Southern District of Indiana
Press releases recorded for this federal judicial district.
Anderson Indiana police officer faces drug distribution chargesRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, today announced the arrest of an Anderson, Indiana police officer for allegedly selling narcotics to an undercover FBI agent while on duty. Donald Jordan, 52, Anderson, was charged with possession with intent to distribute hydrocodone and Xanax.
“The citizens of Anderson deserve better from their public servants,” said Minkler. “When a police officer betrays the trust of the community he serves by dealing drugs, he will be targeted, investigated and prosecuted like any other drug dealer. That being said, I know Mr. Jordan’s criminal choices do not represent the Anderson Police Department or law enforcement in general in Indiana.”
According to the criminal complaint affidavit, in June 2015, a citizen contacted law enforcement with information about criminal activity involving Officer Jordan. Jordan allegedly provided the citizen three hydrocodone pills and asked the citizen to touch him in a sexual manner after Jordan exposed himself. The citizen objected but Jordan grabbed her hand and placed it on his exposed genitals.
On December 9, 2015, an undercover FBI agent met Jordan at a convenience store on West 38th Street in Anderson. They engaged in a conversation and Jordan acknowledged that he had marijuana and Xanax that he could sell. During the conversation, Jordan said he is “a better criminal than he is a cop.”
The undercover agent agreed on a price of $45 for 15 Xanax pills. The agent gave Jordan $60 in cash and Jordan returned $15 in change. He then instructed the agent to go to a local Anderson business and wait for his return. Jordan left the convenient store in his marked police car and met the agent a short while later and transferred the 15 pills. During the transaction,Jordan was on official duty and was dressed in full police uniform, including his police department issued weapon. “Of the more than 300 federal criminal violations investigated by the FBI, few are more important than police officers who harm the communities they serve,” said FBI Special Agent in Charge Jay Abbott. “The FBI worked closely with senior Anderson Police Department officials on this matter. It should be clear, if you violate the public trust, the FBI will find you, will investigate you, and through the USAO, prosecute you to the fullest extent of the law.”
“Allegations of wrongdoing by police officers undermine the public’s trust and confidence in law enforcement,” said Anderson Police Chief Larry Crenshaw. “As law enforcement officers who are sworn to defend and uphold the law, we must maintain a higher level of public trust. The men and women of the Anderson Police Department are dedicated to serving this community and any charge of misconduct against one of our officers is not a reflection of the entire force.”
Jordan had his initial appearance before a magistrate judge in Indianapolis this afternoon and was released on home detention with GPS monitoring.
According to Assistant United States Attorney Cynthia J. Ridgeway who is prosecuting this case for the government, Jordan could face up 15 years if convicted on both counts.
A criminal complaint is only a charge and not an indication of guilt. All defendants are presumed innocent until proven guilty in federal court.
Jared Fogle co-defendant sentenced in federal court on child exploitation and distribution of child pornography chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced the sentencing of Russell Taylor, 44, Indianapolis. Taylor was sentenced to 27 years in federal prison by U.S. District Judge Tanya Walton Pratt after his conviction on 12 counts of sexual exploitation of a child and one count of distribution of child pornography.
“Mr. Taylor victimized children as young as nine years old and protecting those who cannot protect themselves will always be a priority of this office,” said Minkler. “Adults who sexually exploit children by producing child pornography knowingly cause vast harm to their victims and should expect appropriately strong punishment. While no sentence can undo the damage that Mr. Taylor has done, this office remains committed to working with law enforcement to identify, investigate and prosecute these defendants.”
Indiana State Police detectives received information that Taylor was in possession of illegal pornographic images and served a search warrant at his home on April 29, 2015, along with law enforcement officers from the Indianapolis Metropolitan Police Department and the FBI. The investigator used a mobile forensic laboratory to conduct the search of Taylor’s home. The investigators found a cache of sexually explicit photos and videos Taylor produced by secretly filming minor children at this home. Investigators obtained a second search warrant for child pornography and found over 400 videos of child pornography in computers, cellular phones, and storage media recovered from a home office. Taylor is charged with producing these videos inside his current and former Indianapolis residences using hidden cameras, during the period between March 2011 and January 30, 2015.
As stated in court today, Taylor on multiple occasions between March 2011 and April 2015, used several hidden cameras in his residences to produce child pornography involving 12 minors. He knew that the victims in these images or videos were under the age of 18 years. He also knew their identities.
Taylor and co-conspirator Jared Fogle (sentenced to over 15 years in federal prison November 2015) discussed among themselves the fact that Taylor was secretly producing sexually explicit videos of minors in Taylor’s current and former residence. Fogle chose to benefit from such production by obtaining access to a significant amount of such material over the time period. However, Fogle did not produce any of this material himself.
None of the minors in the videos were aware that they were being filmed. Rather, Taylor produced the videos using multiple hidden cameras set up in his residences and oriented to show them nude, changing clothes, or engaged in other activities.
According to Senior Litigation Counsel Steven D. DeBrota, who prosecuted this case for the government, Taylor must also serve a lifetime of supervised release and register as a sex offender. Taylor remains in the custody of the US Marshal’s Service until he is assigned to the Bureau of Prisons.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resource.”
Defendant in land bank scheme sentencedRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that David Johnson, 49, of Indianapolis, Indiana was sentenced to prison today by U.S. District Judge William T. Lawrence for his role in the City of Indianapolis’ Land Bank scandal.
Johnson, the Executive Director of the Indianapolis Minority AIDS Coalition (“IMAC”) was sentenced to 66 months= imprisonment following his conviction at trial for three counts of wire fraud and one count of money laundering. Johnson was also sentenced to serve three years of supervised release following his release from prison.
Johnson and co-defendant Reginald Walton, the former Director of the Indianapolis Land Bank, were convicted at trial of participating in scheme to defraud the City of Indianapolis. Under this scheme, for-profit purchasers of the properties paid bribes and kickbacks to Walton to bypass the legal procedure under which for-profit businesses may acquire foreclosed properties held by the Land Bank. After receiving the bribes and kickbacks, Walton diverted the properties from the City to IMAC, which then transferred the properties to the for-profit purchaser. Johnson participated in this scheme to defraud by making his charity available for the scheme and funneling bribes and kickbacks from the for-profit entity to Walton.
In addition, Johnson and Walton participated in a scheme where they fleeced individuals who had previously been victimized by a separate fraudulent real estate scheme in Indianapolis. Initially, Walton promised to transfer City-owned real estate to the victims of the separate real estate scam for $1,000. Walton, however, subsequently increased the price of the properties to $4,000. Walton and Johnson then pocketed the additional $3,000 that they collected from each victim. In all, Walton and Johnson defrauded fourteen victims in this manner. United States Attorney Josh J. Minkler stated “Abandoned properties are a blight on this community and a threat to public safety. The Land Bank was created as a public service to eliminate that problem. Instead, Reggie Walton and David Johnson used the Land Bank to serve themselves through insider deals involving bribes and kickbacks. The clear message that was sent today is that a federal prison cell awaits those who engage in a scheme of public corruption.”
Minkler further stated, “To be clear a federal sentence of 66 months in prison means just that. You go to prison. There is no parole. There is no half-way house. This is no suspended sentence. There is no home detention or community corrections. At a minimum, Mr. Johnson will be required to serve 85% of the 5 and ½ year sentence in a federal prison.”
Assistant United States Attorneys Bradley A. Blackington and Cynthia J. Ridgeway prosecuted the case for the government. The investigation was conducted by the Federal Bureau of Investigation and the Indiana State Police.
Indianapolis tax preparer sentenced in fraud schemeRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, today announced the sentencing of an Indianapolis woman who prepared fraudulent tax returns earning her clients returns they were not entitled to. Amber Lynch, 34, was sentenced to two years in federal prison by U. S. District Judge Jane Magnus-Stinson.
“Filing false tax returns is stealing; there is no other way to characterize it,” said Minkler. “If you steal from the U. S. Treasury, you will be held accountable.”
Amber Lynch is a former employee of the H&R Block Company who started preparing returns from her home. Returns completed between 2010 and 2013 were flagged by the IRS Fraud Detection Center in Kansas City when a pattern of household help income, abnormal student loan interest and education credits was detected. Over 400 returns were identified as coming from Lynch’s apartment.
Several of her client taxpayers were interviewed by investigators and all stated many of the deductions listed by Lynch on their returns were completely false. Lynch filed tax returns for one client two consecutive years without the client’s authorization. In total, Lynch attempted to steal over $400,000.
Special Agent in Charge Stephen Boyd stated, “The sentencing of Ms. Lynch sends a clear message to the people of Indianapolis that what she was doing was illegal, and there is a price to pay. One of IRS Criminal Investigations main objectives is to ensure that all tax practitioners, tax preparers, and others who practice in the tax law profession adhere to professional standards and follow the law. Those who break the law will be held accountable for their actions.”
According to Assistant U.S. Attorney Bradley P. Shepard, who prosecuted this case for the government, Lynch must serve one year of supervised release after her sentence.
Plainfield scout leader facing child pornography chargesRead the Press Release
Indianapolis--United States Attorney Josh J. Minkler, announced today a former Boy Scout leader has been charged by a criminal complaint with distributing and possession child pornography. Thomas M. Franks, 55, Plainfield, was arrested in his home yesterday and had his initial appearance in federal court this afternoon.
“Our children deserve better from the people we place in positions of trust,” said Minkler. “Those who chose to prey on the youngest of our citizens will be held strictly accountable and face the full wrath of federal prosecution.”
On November 2, 2015, detectives from the Indianapolis Metropolitan Police Department received information from the National Center for Missing and Exploited Children (NCMEC) regarding a pornographic image being uploaded to an email account. The images were traced to a computer at Franks’ Plainfield home.
The government alleges that for nearly four years, Franks has been communicating in chat incest rooms. He would portray himself as the father of six and eight year old daughters. Franks then received sexually explicit images and videos of young children from others in the chat room. The majority of these images were of prepubescent girls engaged in sexually explicit conduct. At the time of the search, over 230 images were recovered from a computer and a thumb drive.
Franks was an assistant scout leader with Plainfield Troop 304 when engaged in the conduct described above. He remains in the custody of the United States Marshal’s Service.
Anyone with information on this case is encouraged to contact IMPD Detective Laura Smith at 317-327-3553 or NCMEC at 800-THE LOST (843-5678).
According to Assistant United States Attorneys Kristina Korobov and Steven D. DeBrota who are prosecuting this case for the government, Franks could face up to 20 years on each count if convicted.
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven guilty in federal court.
Indianapolis man sentenced in identity theft schemeRead the Press Release
Indianapolis--United States Attorney Josh J. Minkler, announced today the sentencing of a man for his role in a fraud scheme where he would use stolen Social Security numbers (SSN) to allow individuals with poor credit histories to purchase new vehicles and other high priced items. David Day, 38, Indianapolis, was sentenced to 92 months (7 years and 8 months) by U. S. District Judge Tanya Walton Pratt for conspiracy to commit wire fraud.
“Identity theft costs our economy billions of dollars and destroys the credit history of legitimate consumers,” said Minkler. “Mr. Day will spend the next seven years in federal prison pondering his mistake.”
Day offered credit repair services to individuals who had poor credit scores for between $2,000-$3,500. The repair service would help those who would not normally qualify for loans to make large purchases using credit. Day would obtain misappropriated SSN’s and referred to them as credit profile numbers (CPNs). His source of supply for CPN’s was from Kimberly Taylor, 39, a resident of California.
Day would identify clients in Indiana and obtain stolen SSN’s from Taylor. Taylor would match the true identity of Day’s customer with the stolen number and provide guidance on how connect the stolen number with the customer’s true name and date of birth. Day would also request supporting fraudulent documents such as utility bills and lease agreements to perpetuate the crime for which he paid Taylor.
Kimberly Taylor was sentenced to 40 months in prison in July, 2014.
According to Assistant United States Attorney Cynthia J Ridgeway who prosecuted this case for the government, Day must repay $679,000 in restitution and serve three years of supervised release after his sentence.
Indiana man sentenced to 35 years in prison for producing child pornographyRead the Press Release
WASHINGTON – An Indiana man was sentenced today to 35 years in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Todd Chambers, 28, of Batesville, Indiana, pleaded guilty to nine counts of production of child pornography. U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana presided over the change of plea hearing and sentencing.
In connection with his guilty plea, Chambers admitted that he produced and distributed via the Internet a series of images of child exploitation. Metadata in the images showed that Chambers produced them over the course of three months. In addition to these images, Chambers possessed thousands of other images of child exploitation on his digital camera, laptop computer, cell phone and other electronic devices.
The FBI and the Indiana State Police investigated the case, with assistance from the Batesville Police Department. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steve DeBrota of the Southern District of Indiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indiana Man Sentenced to 35 Years in Prison for Producing Child PornographyRead the Press Release
An Indiana man was sentenced today to 35 years in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Todd Chambers, 28, of Batesville, Indiana, pleaded guilty to nine counts of production of child pornography. U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana presided over the change of plea hearing and sentencing.
In connection with his guilty plea, Chambers admitted that he produced and distributed via the Internet a series of images of child exploitation. Metadata in the images showed that Chambers produced them over the course of three months. In addition to these images, Chambers possessed thousands of other images of child exploitation on his digital camera, laptop computer, cell phone and other electronic devices.
The FBI and the Indiana State Police investigated the case, with assistance from the Batesville Police Department. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steve DeBrota of the Southern District of Indiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jared S. Fogle sentenced in child pornography caseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of Jared S. Fogle after being convicted of distributing and receiving child pornography and traveling in interstate commerce to engage in unlawful commercial sex acts with minors. Fogle, 38, of Zionsville, Indiana, was sentenced to 188 months (15 ½ years) in federal prison by U. S. District Judge Tanya Walton Pratt in federal court in Indianapolis.
“Earlier today, the Honorable Tanya Walton Pratt sentenced Jared S. Fogle to 188 months (15 ½ years) in prison. While no sentence will bring back the innocence or relieve the pain of Fogle’s victims, Judge Pratt properly rejected Fogle’s plea for a 5 year sentence and imposed an appropriate sentence of 15 and ½ years. My office works within the federal sentencing laws, and this community has my word that the law was followed today. Those who engage in child exploitation received a clear message today. If you engage in this conduct, you will be investigated, identified, and prosecuted, and you will go to prison.”
Minkler further stated, “my office will continue to protect victims of child exploitation through aggressive prosecution and a close working relationship with law enforcement.”
Between March 2001 and May 2015, Fogle received and viewed child pornography some given to him by his co-conspirator, Russell Taylor (federally charged separately, May 2015). Fogle did this to fuel his sexual fantasies involving children. The child pornography Fogle viewed included homemade material involving victims in Indiana as well as commercially produced files Taylor obtained through internet sources. Fogle knew that the children depicted in the homemade images or videos were under the age of 18 years. He also knew of Taylor’s family relationship or association with the victims, including in many instances, their actual names.
In November 2012, Fogle traveled to New York City and engaged in commercial sex with a 17 year old minor in a hotel there. After the encounter, he sent the victim text messages, offering to pay her a fee if she could find other underage girls to have sex with him. In January 2013, he returned to New York City and engaged in commercial sex with the same victim knowing she was under 18 years old. Fogle later returned to New York and engaged in commercial sex with yet another underage minor.
This case was the result of a joint federal, state and local investigation by the Indiana State Police, Indianapolis Police Department, Federal Bureau of Investigation and the Indiana Internet Crimes Against Children Task Force, with the assistance of the Marion County Prosecutor’s Office.
Indiana State Police Superintendent Doug Carter said, "The Jared Fogle chapter is now closed with the announcement of his sentencing and his removal from a free society. But, tragically, we know sexual crimes against children won't end; there are others who think they won't be caught. Carter concluded, "So with this announcement we also take the opportunity to encourage, in the strongest words possible, any past or current victims of unreported child sex crimes to seek help from law enforcement and bring these vile criminals to justice."
“In our society, children are our most precious resource,” said IMPD Chief Rick Hite. “It is our collective responsibility to protect them from predators and bring to justice anyone who causes them hurt, harm, or danger.”
“As with all child pornography cases, the FBI investigates these cases with a sense of urgency due to the extreme vulnerability of the victims involved; our children,” said FBI Special Agent in Charge, W. Jay Abbott. “This case demonstrates that commitment to investigate those who would possess child pornography. The FBI looks forward to continuing its work on such matters with the United States Attorney’s Office, the Indiana State Police and the Indianapolis Metropolitan Police Department.”
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuted the case for the government, Fogle must pay a $175,000 fine and serve a lifetime of supervised release after his sentence.
Fogle also agreed to pay a total of $1,400,000 in restitution to the 14 victims in the case, 8 of whom are still minors, and forfeit assets of $50,000. This is the largest amount of restitution ever ordered for a child pornography or sex trafficking case in the history of the Southern District of Indiana. The victims will be able to use these funds to pay for counseling and treatment to combat the debilitating life effects of these crimes.
25 charged in drug trafficking organizationRead the Press Release
Indianapolis--United States Attorney Josh J. Minkler and Marion County Prosecutor Terry Curry announced federal and state charges against 25 individuals in a drug trafficking conspiracy that brought pound quantities of methamphetamine and heroin into the Indianapolis area.
“Criminal organizations have the goal of infecting neighborhoods with drugs, guns and violence,” said Minkler. “It is a top priority of federal law enforcement to work with state and local law enforcement to identify, investigate and eliminate those organizations. I want to assure this community that the elimination of armed drug trafficking organizations reduces violent crime in Marion County.”
Six SWAT teams and approximately 175 federal, state and local law enforcement officials served 20 warrants all around Marion County early this morning. The raids netted over two pounds of heroin, 19 pounds of methamphetamine and 16 guns. (a stolen Kel-tec 9 mm rifle, SKS 7.62 mm rifle, sawed off shotgun and several handguns)
In March 2015, agents from the Drug Enforcement Administration (DEA) learned of a drug conspiracy bringing large quantities of red methamphetamine and heroin into the Indianapolis area. Alfonso Pineda-Hernandez and Nicolas Cazares-Garcia received large quantities of methamphetamine from sources in Mexico that were delivered to Indianapolis and then redistributed. They were also responsible for obtaining large quantities of heroin from local suppliers and redistributing the drug through subordinate distributors.
The defendants used cellular phones to maintain contact with one another during the conspiracy. Cazares-Garcia, Pineda-Hernandez and others, used cell phones to maintain contact with suppliers of controlled substances in Mexico. They discussed the availability and prices of methamphetamine and heroin, arranged for deliveries of the drugs and arranged for payment of drugs which had already been delivered. They used multiple cell phones simultaneously and changed phones frequently, using different numbers to communicate by voice and text.
“A big part of public safety depends upon the disruption and dismantlement of heroin drug-trafficking networks,” said Greg Westfall, Assistant Special Agent in Charge of the Drug Enforcement Administration.
“Drug trafficking organizations thrive on financial gain and perpetuate criminal violence in our city,” said IRS Criminal Investigation Special Agent in Charge, Stephen Boyd. “IRS Criminal Investigation is committed and determined to work together with our federal, state and local partners to bring justice to the streets of Indianapolis and keep the communities in which we live safe.”
"Today, the Indianapolis Metropolitan Police Department (IMPD) assisted with several drugs raids throughout Indianapolis. We, along with our federal, state and local partners, remain committed to rooting out violent crime and identifying those responsible for harm within our community,” said IMPD Chief Rick Hite. “This inter-agency cooperation has led to successful investigations and prosecutions in the past and sends a clear message. We stand together in our efforts and applaud the community for their tips and leads."
Arrested today include:
Federal Charges :
Alfonso-Pineda-Hernandez, a/k/a Flaco, 30
Nicolas Cazares-Garcia, a/k/a Niko, 28
Aurelio Estrada-Alvarado, a/ka/ Winn, 20
Jose Trinidad- Garcia Jr., 32
Miguel Barragan-Lopez, 35
Mario Gomez-Cano, 20
Javier Sarabia-Gutierrez, a/k/a Cholo, 30
Fernando Paniagua, 22
Cynthia Vergara, 24
Francisa Vasquez-Casimiro, 45
Fugitives:
Jose Araujo-Orduno, a/k/a Cuervo , 18
Oswaldo Rendon, a/k/a Junior, 22
State Charges:
Billy Buchanan, 20, Indianapolis
Cassandra Crank, 24, Indianapolis
Jessica Crank, 23, Indianapolis
Zachary Daniels, 21, Indianapolis
Raul Guitierrez, 29, Indianapolis
Ronald Lee, 47, Indianapolis,
Andres Martinez, 30, Indianapolis
Isreal Vasquez, 27, Indianapolis
Joseph Vasquez, 18, Indianapolis
Still at Large:
Frederico Gonzalez-Ortega, 31, Indianapolis
Johnathon Perkinson, 24, Indianapolis
Shannon Rayas, 42, Indianapolis
Simon Ruiz, 24, Indianapolis
This case was investigated by the Drug Enforcement Administration, Indianapolis Metro Drug Task Force, Internal Revenue Service Criminal Investigation, Homeland Security Investigations, United States Marshal’s Service, Marion County Prosecutors Office, Indiana State Police, Hamilton County Drug Task Force, Carmel Police Department, Beech Grove Police Department, Pittsboro Police Department, Richmond Police Department, Bloomington Police Department and the Lawrence Police Department.
According to Assistant U.S. Attorney Matthew J. Lasher who is prosecuting this case for the government, most federal charges carry a sentence from ten years to life in prison, a $1,000,000 fine and years of supervised release.
An indictment is only a charge and not an indication of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Media AdvisoryRead the Press Release
EVANSVILLE - United States Attorney Josh Minkler will hold a press conference today, at 3:00 pm CST, in the Evansville United States Federal Courthouse, Third Floor, U.S. District Court Law Library.
Minkler will be joined by officials from the United States Secret Service, United States Postal Inspector, Indiana State Police and the Evansville Police Department to discuss the indictment of 36 defendants for a massive fraud scheme involving staged automobile crashes in the tri-state area.
36 charged in fraud scheme involving staged automobile crashes in the tri-state areaRead the Press Release
Evansville - United States Attorney Josh J. Minkler, today announced federal charges against 36 individuals in an elaborate scheme to defraud insurance companies by staging automobile crashes and filing false police reports. Three SWAT teams and over 70 federal, state and local law enforcement officials served warrants this morning in the tri-state area, apprehending those involved.
“The Burris family is the face of organized crime in the Evansville area,” said Minkler. “My office has a zero-tolerance policy when it comes to those who conspire to steal money and put countless lives at risk through their dangerous scheme.”
The indictment alleges that between 2008 and 2014, Michael W. Burris, Sr. 56, his wife Lisa K. Burris, 53, their sons Justin A. Burris, 26, and David B. Smitha, 38, and others, planned a series of automobile crashes in and around Evansville. They recruited persons to participate in the staged crashes, made false police reports about the crashes, and then filed claims with insurance providers for “injuries” suffered in the crash which were self-inflicted or fabricated.
In several scenarios, members of the Burris family conspiracy acquired an automobile to use in the staged crash and made certain the vehicle was insured or obtained insurance just weeks before the staged crash. They would then recruit someone to crash the vehicle in a remote area, into a tree or other fixed object causing significant damage. After the crash, the driver would leave the scene and other recruited participants waiting nearby would enter the vehicle and wait for emergency personnel to respond. They would then make a false police report and be taken to the hospital for their purported injuries. Vehicles were often loaded with three or four people after the staged crash to maximize insurance claims.
The indictment further alleges Burris Sr. and his conspirators purposely injured the “victims” to create an appearance that they sustained the injuries in the crash. They did this by punching them in the face, cutting their face with a razor blade and using a wire brush on their forehead.
Lisa Burris and other conspirators instructed the crash participants on how to appear injured by not exiting the vehicle under their own power, using emergency medical resources, and running up medical expenses through hospital stays. She had the “victims” submit false insurance claims and would coach them on how to answer questions from the insurance representatives. When the crash participants received their injury claim checks from the insurance companies, it is alleged in the Indictment that Michael Burris, Sr. and the participants would go directly to the bank on which the check was written, get cash, and divide it among the conspirators.
This case was investigated by the United States Secret Service, United States Postal Inspection Service, Evansville Police Department, Indiana State Police, and the Federal Bureau of Investigation. The Vanderburgh County Sheriff’s Office, the United States Marshal Service, and the Bureau of Alcohol Tobacco Firearms and Explosives assisted in the arrest of the 36 persons charged in the indictment today.
"Over the last year and half, the Secret Service has tirelessly pursued justice with the assistance of many other federal, state and local agencies,” said Assistant Special Agent in Charge Paul Dvorak. “Insurance fraud is not a victimless crime. This type of fraud can have a significant detrimental effect on the economy of our community. We are proud that the significant and numerous arrests made here today will have a positive impact on the city of Evansville and hopefully deter similar crimes in the future.”
“The U.S. Postal Inspection Service will continue to strongly pursue its mission of investigating mail fraud crimes and protecting the US Postal Service and its customers,” stated Inspector in Charge, Tommy Coke, Pittsburgh Division, U.S. Postal Inspection Service.
“When I started my career in retail loss prevention over twenty years ago, the Burris family and their associates were one of the first criminal groups I dealt with,” said Evansville Police Chief Billy Bolin. “It would be nice if they learned from their past mistakes, but it appears they’ve just become more sophisticated in their schemes.”
“I’m pleased the state police were able to play a role in advancing this investigation” said Indiana State Police Superintendent Doug Carter. “Financial crimes like this impact insurance premiums for honest people and this particular criminal enterprise also resulted in public safety resources responding to staged crash scenes,” Carter concluded.
According to Assistant U.S. Attorneys Todd S. Shellenbarger and Kyle Sawa who are prosecuting this case for the government, each charge carries a maximum sentence of 20 years in prison, a $250,000 fine and 3 years of supervised release.
An indictment is only a charge and not an indication of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The following individuals were indicted
Michael W. Burris, Sr. Age 56 Evansville, Indiana
Lisa K. Burris Age 53 Evansville, Indiana
David B. Smitha Age 38 Evansville, Indiana
Justin A. Burris Age 26 Evansville, Indiana
Amanda J. Carreno Age 35 Evansville, Indiana
Timothy S. Ivy Age 44 Evansville, Indiana
Michael W. Burris, Jr. Age 30 Evansville, Indiana
Timothy P. Rice Age 38 Evansville, Indiana
Shawn M. Wright Age 21 Henderson, Kentucky
Jordan T. Lawrence Age 21 Evansville, Indiana
Joshua J. Norman Age 25 Evansville, Indiana
Shaun T. Gibson Age 36 Evansville, Indiana
Kyle Blake Lee Smitha Age 20 Evansville, Indiana
Thomas J. Thomas Age 21 Evansville, Indiana
Alyssa R. Vailes Age 22 Evansville, Indiana
Latisha L. Smith Age 36 Evansville, Indiana
Dillon A. Williams Age 22 Evansville, Indiana
Brooke N. Cox Age 32 Evansville, Indiana
Brooke N. Ewers Age 27 Evansville, Indiana
Toni J. Wilson Age 41 Evansville, Indiana
Jerry A. McGill Age 55 Evansville, Indiana
Benjamin W. Widick Age 42 Evansville, Indiana
Lynn M. Smitha Age 34 Evansville, Indiana
Phillip J. Gibson Age 37 Chandler, Indiana
Michelle L. Stuard Age 30 Evansville, Indiana
Ariel R. Pace Age 24 Evansville, Indiana
Ashley N. Hines Age 29 Evansville, Indiana
Crystal D. Uziekalla Age 41 Evansville, Indiana
David W. Uziekalla Age 38 Wadesville, Indiana
Tiffany L. Bowen Age 26 Evansville, Indiana
Shawna M. Morell Age 35 Chandler, Indiana
Jamey L. Grant Age 27 Evansville, Indiana
Ryan Maun Age 28 Evansville, Indiana
Mary E. Houchin Age 36 Evansville, Indiana
Theresa A. Frank Age 31 Boonville, Indiana
Sherry W. Greenwalt Age 41 Evansville, Indiana
Three New Albany-area men sentenced in fraud schemeRead the Press Release
New Albany – Josh J. Minkler, United States Attorney, announced today that three Louisville-area men were sentenced in federal court on fraud charges. U.S. District Judge Sarah Evans Barker sentenced Travis O. Kiser, 43, Louisville (18 months), Kevin J. O’Donnell, 44 Louisville (15 months) and David Gibson, 45, Floyds Knob (one year and one day) after their convictions for wire fraud and money laundering.
“Defrauding insurance companies has an immediate impact on all of us through higher premiums,” said Minkler. “When emergencies arise and people need their insurance companies, they deserve honest and quick acting service from all who process the claim”
Between 2011 and 2014, Travis Kiser conspired with O’Donnell and Gibson to defraud Farm Bureau and Cincinnati Insurance companies in excess of $340,000.
Gibson was employed by Indiana Farm Bureau Insurance Company as a field claims adjuster in New Albany, Indiana. Kiser was employed by Belfor USA, a restoration company located in Louisville, Kentucky, as a marketing manager. The two orchestrated the scheme by creating an artificial company, Derby City Solutions LLC, to submit inflated invoices to Farm Bureau for emergency services actually performed by Belfor. Kiser would use cashier’s checks payable to Belfor to hide the existence of his sham company. The two would then split the fraudulent proceeds which totaled approximately $126,360.
In a second scheme, Kiser and O’Donnell formed a company called River City Solutions, LLC, which originally was legitimate but later was used solely to defraud the Cincinnati Insurance Company (CIC). The scheme was similar to the previous one. O’Donnell was a field claims superintendent for CIC in Louisville, Ky. He would submit false or inflated invoices for emergency restoration to CIC for payment. They used their pass- through company, River City to defraud the insurance company. Often times the pair would submit invoices that were inflated, the work was performed by another company or never performed at all. They used cashier’s checks payable to the company that legitimately performed the services to hide their fraud. The total loss to CIC was approximately $216,332.
Some of the emergency work being performed was a result of the New Pekin and Henryville tornadoes from February 2012.
This case was investigated by the Internal Revenue Service, Criminal Investigation who Judge Barker lauded for their efforts in such a complex and sophisticated scheme.
IRS Criminal Investigation Special Agent in Charge Stephen Boyd stated, “Insurance fraud impacts almost all honest American citizens because the cost of this crime comes out of all of our pockets. IRS Criminal Investigation special agents are experts in tracing the flow of money which assisted the investigative team in uncovering the three guilty individuals who will be held accountable with time in prison.”
According to Assistant United States Attorney James M. Warden, who prosecuted this case for the government, all three men must serve a period of supervised release after their sentence, some of which is on home detention. They must also make full restitution for the money they stole.
Indianapolis man sentenced in North Vernon robbery and murder caseRead the Press Release
New Albany - United States Attorney Josh J. Minkler, announced today and Indianapolis man was sentenced for his role in the murder and robbery of Scoot D. Maxie a gun store owner near North Vernon, Indiana. Darryl A. Worthen, 25, was sentenced to 60 years in federal prison by U. S. District Judge Sarah Evans Barker at the federal courthouse in New Albany.
“This type of violence is something no family or community should have to face,” said Minkler. “Judge Evans Barker sent a loud and clear message that gun violence will not be tolerated in the Southern District of Indiana and those committing violent crime will be held accountable.”
On September 20, 2014, Darryl Worthen, his brother Dejuan Worthen and cousin Darion Harris traveled from Indianapolis to North Vernon to see what inventory was inside the Muscatatuck Outdoors Gun Shop and made plans to rob the owner. They drove back to Indianapolis only to return the following day to commit the robbery.
After returning to the gun store on September 21, 2014, one of the defendants disconnected a security camera inside the gun shop. During the robbery, Darryl Worthen shot and killed Maxey with a .22 caliber handgun then all the defendants stole a large quantity of firearms from the gun shop and returned to Indianapolis. Once home with the guns, the defendants sold and distributed many of the firearms and kept several for themselves.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, Indianapolis Metropolitan Police Department, Jennings County Sheriff’s Department and the Jennings County Prosecutors Office.
“There is no place in our society for those who use violence to further their criminal aims, particularly when it costs the life of valued members of our families and communities,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “ATF takes pride in working with our law enforcement partners at the federal, state, and local levels to bring those individuals who commit senseless acts of violence like this to justice and ensure that they cannot cause further harm.”
“Violent crime will not be tolerated in this community,” said Jennings County Prosecuting Attorney Brian Belding. “The individuals responsible should be punished to the fullest extent of the law. The decision to have these individuals charged federally was made after thoughtful consultation with the family members. My goal was that the individuals responsible for this heinous act serve the maximum sentence under the law. This was accomplished under the federal sentencing guidelines. As much as it would be appropriate to prosecute these crimes locally, it was not in the best interest of our community because Mr. Worthen received a harsher sentence in Federal Court. My heart goes out to Mr. Maxie’s family, friends, and loved ones.”
According to Assistant U.S. Attorneys Barry D. Glickman and William L. McCoskey, who prosecuted this case for the government, Worthen must serve two years of supervised release after his sentence.
Worthen’s co-defendants DeJuan A. Worthen and Darion D. Harris are both awaiting trial on their charges.
Former Owen County auditor sentenced on theft chargesRead the Press Release
TERRE HAUTE - United States Attorney, Josh J. Minkler, announced today the sentencing of the former auditor of Owen County. Angela Lawson, 57, Gosport, was sentenced to 20 months in federal prison by U. S. District Judge William T. Lawrence after her conviction on five counts of theft concerning programs receiving federal funding.
"The citizens of Owen County deserve elected officials whom they can trust to be fiscally responsible and to do the right thing,” said Minkler. “When that trust is betrayed, it shakes the foundation of our democracy and weakens the effectiveness of local government.”
Angela Lawson served as the elected auditor of Owen County from 2005 through 2012 and as chief deputy auditor from January 2013 through August 14, 2014. She also served as an Owen County Council member from January 2013 through December 2014. In the scope of her employment, Lawson possessed the authority to make public expenditures on behalf of Owen County through a credit card account at Walmart.
During her time in office, Lawson had access to separate credit cards which were issued to various authorized buyers. Over the period March 1, 2010, through December 31, 2014, Lawson stole nearly $310,000 and used it to pay personal expenses that included food, alcohol, gift cards, toys, jewelry and vacations.
Loss totals include:
- 2010--$36,720.18
- 2011--$56,376.04
- 2012--$80,847.03
- 2013--$79,240.51
- 2014--$56,415.04
This investigation was a collaborative effort between the United States Postal Inspection Service, Indiana State Police, Indiana State Board of Accounts and Mr. Robert Cline (Special prosecutor assigned to investigate)
According to Drug and Violent Crime Chief Bradley Blackington who prosecuted this case for the government, Lawson must serve three years of supervised release after her sentence and repay over $300,000 in restitution.
Methamphetamine distribution conspiracy dismantled in Southwestern IndianaRead the Press Release
Terre Haute –United States Attorney Josh J. Minkler today announced charges against seven individuals involved in a methamphetamine conspiracy reaching from Indianapolis to Lawrenceville, Illinois.
“Methamphetamine has been a scourge on our Central Indiana communities for too long,” said Minkler. “Those who choose to violate the law by selling illegal drugs will be held strictly accountable and face the hammer of federal prosecution.”
Those indicted for conspiracy to distribute methamphetamine include:
Julius I. Weldon, a/k/a Joc, 41, Indianapolis, In.
Shevockus L. Swing, a/k/a Vock, a/k/a Little Homie, 27, Vincennes, In.
Jason Davis, a/k/a, Big Homie, 32 Bruceville, In.
James T. Western, a/k/a Country, 46, Lawrenceville, Il.
Donta Henderson, 35, Vincennes, In.
Justin Swain, 36, Lawrenceville, Il.
Tammy Gillespie, 34, Lawrenceville, Il.
According to the indictment, Julius Weldon was the source of supply, receiving his methamphetamine from Arizona. The packages of methamphetamine were delivered by UPS and FedEx to Weldon’s home in Indianapolis. Weldon distributed his drugs to Swing, Davis, and Western. Western would then distribute to Swain and Gillespie for redistribution in the Lawrenceville, Illinois area. Henderson was a drug runner for Weldon to other locations in central Indiana.
This case was investigated by the Drug Enforcement Administration, Indiana State Police, Illinois State Police, Daviess County Sheriff’s Department, Knox County Sheriff’s Department and the Lawrence County Illinois Prosecutor’s Office.
Weldon remains a fugitive but the other defendants had their initial appearance in federal court in Terre Haute on Friday, October, 16, 2015, and were all detained. Their detention hearing is scheduled for October 21, 2015, at the Terre Haute Federal Courthouse.
According to Chief of the Drug and Violent Crime Unit Bradly A. Blackington, who is prosecuting this case for the government, all could face up to twenty years in prison if convicted.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Chicago Man Sentenced on Heroin ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Darnell Roy Baker, a.k.a. "Forty," 26, of Chicago, Illinois, was sentenced to 5 years in federal prison, followed by 4 years’ supervised release, a $500 fine and a $500 special assessment. Specifically, Baker was sentenced for Conspiracy to Distribute Heroin from September 2012 through October 2014 in Marion County (Count 1), and four counts of Distribution of Heroin during June and July 2014, also in Marion County (Counts 2, 3, 4, and 6). The offenses are in violation of the federal Controlled Substances Act.
According to court documents, Baker agreed with his co-defendants, Dominique Burwell, and Marquise Ross, to distribute heroin for profit in Centralia, Marion County, Illinois. Baker and the others shared a cell phone which customers would contact to order heroin. Burwell often answered the shared cell phone, took the order, and then sent Baker or Ross to complete the transaction with the customer at whatever location was agreed upon. In July, Burwell was convicted in the case. In August, Ross pleaded guilty in the case and is awaiting sentencing.
Information leading to the charges against Baker was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Monroe County Correctional Center coordinator indicted on fraud and embezzlement chargesRead the Press Release
Indianapolis - United States Attorney Josh Minkler today announced fraud and embezzlement charges against a woman who served as the administrative coordinator for the Monroe County Correctional Center. Karen S. Bridges, 45, Mitchell, Indiana, was arrested this morning for her role in allegedly stealing cash from the Monroe County Cash Bond Fund.
“The citizens of Monroe County deserve much better from their public servants,” said Minkler. “Ms. Bridges used public funds as her personal checking account and now will be held accountable.”
From 1996 until June 2015, Bridges served as an administrative coordinator for the Monroe County Correctional Center and oversaw the cash bond account which is used for the receipt of jail bonds for Monroe County. The cash bond account is used as a pass through account for the receipt of inmate bond funds which are later disbursed to the Monroe County Clerk of the Courts.
When an individual appears at the Monroe County Jail to pay a bond for an inmate’s release, they pay with cash, a money order or a pre-established GPS account. Envelopes with the bond payments were placed in a locked safe, which Bridges had access to.
As part of the scheme to hide her embezzlement, Bridges allegedly submitted false invoices to the county purporting to be from Advanced Correctional Healthcare (ACH), including invoices for work which had not been completed. ACH provided health care to jail inmates. When ACH discovered the overpayments from Monroe County, it sent refunds to Bridges’ attention at the Monroe County Correctional Facility. The refunds from ACH were deposited into the Cash Fund Bond account to cover the shortages that resulted from her embezzlement.
On several occasions, Bridges reported falsely to the Indiana State Board of Accounts that shortages in the cash bond fund were “in transit” meaning, the checks for bond payments had not yet been processed by the account holder’s financial institution. The result of Bridges’ alleged embezzlement is approximately $264,000.
This case was jointly investigated by the Federal Bureau of Investigation, Indiana State Police Organized Crime and Corruption Unit and the Indiana State Board of Accounts.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant United States Attorney Jonathan A. Bont who are prosecuting this case for the government, Bridges could face up to 20 years in prison, if convicted of the most serious offense.
United States Attorney’s Office announces demolition of Outlaw motorcycle gang clubhouseRead the Press Release
INDIANAPOLIS- United States Attorney Josh Minkler and United States Marshal Kerry Forestal announced today the demolition of three buildings that the Outlaws Motorcycle Club (OMC) used as a compound to facilitate their illegal activity. The first building, located at 305 North Jefferson Avenue, served as the clubhouse for the OMC for several decades. The second building, located at 2204 East New York Street, served as the bunkhouse for the OMC for several decades. The third building, located at 2210 East New York Street, housed members of the OMC for several years. All three properties are being razed by contractors through the United States Marshal’s Office.
“This clubhouse has long been the epicenter of criminal activity for the Outlaws in Indianapolis,” said Minkler. “It was the ‘safe house’ the Outlaws ran their criminal enterprise from and the residential face of organized crime.”
Fifty-one defendants were indicted following an organized crime investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service, and Indianapolis Metropolitan Police Department. The indicted defendants included all fifteen members of the Indianapolis chapter of the OMC, two members of the Fort Wayne chapter of the OMC, one member of the Sandusky, Ohio chapter of the OMC, and one former member of the Indianapolis chapter of the OMC. All of the OMC members were charged and convicted of violations of the Racketeer Influenced and Corrupt Organization (“RICO”) statute, as well as offenses such as mail fraud, wire fraud, money laundering, extortion, drug trafficking, witness tampering, and illegal gambling. Forty-nine of the fifty-one defendants have been sentenced. Two low-level members of the Mexican drug trafficking organization who supplied the OMC with cocaine were deported before the indictment and have not been extradited from Mexico.
The government initiated the forfeiture proceedings against the three properties in the original indictment on July 2, 2012. The forfeiture became appropriate because the properties provided the indicted members of the OMC with a source of influence over the criminal enterprise (the OMC). Judge Tanya Walton Pratt initially dismissed challenges to the forfeiture on August 15, 2014. Associates of the OMC, however, appealed Judge Pratt’s ruling to the Seventh Circuit Court of Appeals. After the Seventh Circuit upheld Judge Pratt’s dismissal of these challenges, the forfeitures became final on July 9, 2015.
The United States Marshals Service took custody of the properties in mid-September, 2015. They have managed the properties until today’s demolition of the properties. The USMS serves as the primary custodian of federally seized property and plays a critical role in managing and selling assets seized and forfeited by federal law enforcement agencies.
“The combined efforts of all levels of law enforcement were essential to remove this deeply entrenched organized crime motorcycle gang from our community,” said U.S. Marshal Kerry J. Forestal. “The demolition of their Indianapolis-based club house is not your tax dollars at work. The funds expended were those seized from other criminals and fraudsters used for the betterment and safety of our community.”
FBI Special Agent in Charge W. Jay Abbott said, “Today’s demolition plays a significant role as it eliminates this long-standing structure which has been the focal point of criminal activity for years.”
“Our continued efforts to disrupt and dismantle organized crime groups like the Outlaw Motorcycle Gang does not stop with taking them off the streets,” said Stephen Boyd, Special Agent in Charge, Chicago Field Office. “In this instance, it has led to the destruction of an asset acquired as a result of their crimes.”
The structures from all three properties will be demolished and the land near the intersection of New York Street and Jefferson Avenue will be donated to the City of Indianapolis for the benefit of the community.
Drug and Violent Crime Chief Bradley A. Blackington prosecuted this case for the government.
Media advisoryRead the Press Release
INDIANAPOLIS--United States Attorney Josh Minkler will hold a press conference TODAY, October 13, 2015, at 1:00 pm, at the former site of the Outlaw Motorcycle Clubhouse, 305 North Jefferson Avenue, Indianapolis, IN. The clubhouse will be demolished as part of a federal asset forfeiture procedure.
Minkler will be joined by U.S. Marshal Kerry Forrestal, officials from the FBI, IRS, IMPD, ISP and Mayor Ballard’s Office. This will be an outdoor event.
Man charged with firearm and drug offenses for shooting outside federal courthouse in IndianapolisRead the Press Release
INDIANAPOLIS –United States Attorney Josh Minkler today announced charges against a man who is alleged to have fired shots from a handgun in front of the Birch Bayh Federal Courthouse in Indianapolis. Marcus Fennell, 23, Indianapolis, was charged with being a felon in possession of a firearm, discharging a weapon in the commission of a drug trafficking crime, and possession with intent to distribute marijuana.
“Violent crime typically starts with someone who is illegally in possession of a firearm,” said Minkler. “If you choose to use a weapon to commit crime in Indianapolis, be prepared to face the full weight of federal prosecution.”
According to the criminal complaint, Indianapolis Metropolitan Police Department officers heard shots being fired near the federal courthouse in downtown Indianapolis on October 8, 2015 at approximately 8:20 am. They observed a crowd of people running from the area and after speaking to witnesses, determined Fennell had fled the scene and was near Indiana War Memorial Park in the 500 block of North Meridian Street.
Officers quickly apprehended Fennell and found a loaded 9mm handgun in the pocket of his pants. He also is alleged to have had in his possession 110 pre-packaged bindles of marijuana for individual sale. Officers also found two 9mm shell casings at the scene of the shooting. Fennell has a prior felony conviction for robbery in Marion County in 2012, which makes it illegal for him to possess a firearm.
This case is being investigated by the Indianapolis Metropolitan Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and Federal Protective Service.
Fennel will have his initial appearance in federal court at 2:30 pm today.
According to Assistant U.S. Attorney Jeffrey D. Preston who is prosecuting this case for the government, the maximum penalty Fennell could face is up to life in prison if convicted of all counts.
Indy’s high five line to continueRead the Press Release
Earlier this week, over 70 prominent men from the Indianapolis community attended a rally at the Tindley Preparatory Academy to show their support for the young men attending school there. A human tunnel was formed by men from the community as the Tindley scholars ran through getting “high fived” starting their school day.
The program was a huge success, (see Indy Star article indy.st/1Rrrc4e) and U S Attorney Josh Minkler would like to extend an invitation to all men in this community to come forward and show their support for the youth in our community.
“I was uplifted by the show of support by so many caring men at Tindley Prep earlier this week,” said Minkler. “The rally gave me renewed confidence, that together, we can make a difference in keeping our children safe and reducing violent crime in our neighborhoods. I challenge every person in Indianapolis to come out to future events and do your part to support our youth.”
Future events include:
Friday October 30, 2015, 7:30 am, John Marshall, 10101 E. 38th Street
Monday, November 2, 2015, 7:30 am, Avondale Meadows, 3980 Meadows Drive
Friday, November 13, 8:30 am, Arlington Woods Elementary, 5801 E 30th Street
Monday, November 16, 2015, 8:15 am, Geo H. Fisher Elementary, School #93,
7151 E 35th Street.
Friday, December 4, 7:00 am, Westlake Elementary, 271 Sigsbee Street
Friday December 11, 2015, 8:00 am, Vision Academy @ Riverside,
1751 Riverside Drive
Other dates will be announced in the near future.
Sister and brother pair indicted in bankruptcy fraud schemeRead the Press Release
Evansville – United States Attorney Josh Minkler announced today, Patricia Bippus-Allen, 56, and her brother David Bippus, 66, both of Evansville were indicted on multiple counts relating to a bankruptcy fraud scheme.
“Using the bankruptcy system and government resources to further one’s own selfish and fraudulent scheme will not be tolerated,” said Minkler. “If you intentionally waste the government’s limited judicial resources, you will be held strictly accountable.”
In September 2010, Bippus-Allen filed a joint chapter 13 petition in both her and her husband’s name in United States Bankruptcy Court for the Southern District of Indiana. This was done without her husband’s consent, knowledge or authorization. During the course of the bankruptcy, Bippus-Allen created several documents with a forged signature of her husband of over 25 years.
Bippus-Allen also provided her bankruptcy attorney with a letter from a doctor stating her husband was under his care and would be in the hospital for at least 30 days and could not see visitors or take phone calls. The doctor who purportedly signed the letter stated it was a forgery and that he had never provided services for her husband.
In March 2011, Bippus-Allen attended a 341 meeting of creditors at which her husband was required to attend as well. David Bippus, her brother, attended the meeting with Bippus-Allen and posed as Bippus-Allen’s husband. Bippus-Allen and David Bippus both stated under oath that he was the husband and that all schedules and documents filed in the bankruptcy were true and correct.
Based on the representations made by Bippus-Allen and David Bippus, a bankruptcy plan was confirmed requiring monthly payments for 60 months. Pursuant to this plan, approximately $74,000 was deducted from the paychecks of Bippus-Allen’s husband without his consent or knowledge.
Further, Bippus-Allen was charged with several counts of wire fraud for transferring money from her husband’s 401 (k) account without his consent, knowledge, or authorization. Bippus-Allen made multiple calls to the 401(k) service center purporting to be her husband while also faxing supporting documentation to the service center for the 401(k) hardship withdrawal. The supporting documentation included records purportedly from a dental office which were determined to not be genuine business records.
This investigation was conducted by the Federal Bureau of Investigation and the Bankruptcy Fraud Working Group.
“I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in the bankruptcy system as evidenced by the charges announced today, “ stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10).
According to Assistant United States Attorneys Kyle M. Sawa and Todd Shellenbarger, who are prosecuting this case for the government, Bippus-Allen could face decades in prison if convicted on all counts. David Bippus faces up to five years on each count if convicted.
An indictment is only a charge and all defendants are innocent until proven guilty beyond a reasonable doubt in federal court.
Media advisoryRead the Press Release
Indianapolis—United States Attorney Josh J. Minkler invites members of the Indianapolis media to join he and Marion County Juvenile Magistrate Judge Geoffrey Gaither at a rally at the Tindley Preparatory Academy. Recently, several young children in our city have lost their lives to senseless gun violence. Violence that seems to have a ripple effect in our communities, schools and families. The violence must stop!
Minkler and Gaither are calling for “all men” with an investment in this great city to join them before school starts on Monday, October 5, 2015 at 7:15am to greet and encourage the young men and demonstrate that our community cares about them. All in attendance will show their support by forming an Indy’s High-Five Line to greet these young men to start their school day.
All Indianapolis residents are encouraged to attend.
WHERE: Charles A. Tindley Preparatory Academy,
4010 North Sherman Drive, Indianapolis, Indiana 46226.
7:15 am
Indianapolis man sentenced to 46 months for health care fraud and identity theftRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of an Indianapolis man for defrauding Medicare, Medicaid and Anthem Blue Cross as well as identity theft. Ronald Reed, 47, of Indianapolis was sentenced by U. S. District Judge Jane Magnus-Stinson to 46 months in federal prison.
“Mr. Reed, and others like him, cost American taxpayers billions of dollars every year through waste, fraud and abuse,” said Minkler. “He took advantage of individual patients and left one victim stranded on the roadside but now he will spend nearly four years in federal prison to think about his crime.”
Reed, through his company Benchmark Mobility, provided power wheelchairs and hospital beds to disabled Hoosiers through Medicare, Medicaid, and Anthem. In 2009, Reed and Benchmark were in financial difficulty and no longer able to purchase inventory from manufacturers. Reed devised a scheme where he purchased used wheel chairs and beds from eBay, Craig's List, and similar sights at significant discounts. Reed then directed that the equipment have its serial numbers stripped, and be repainted in an attempt to hide its used nature. These products were then given to beneficiaries and billed to the insurance companies as if new. This conduct continued from 2009-2011.
Often times this equipment was in severe disrepair. On multiple occasions, disabled beneficiaries were stranded when their "new" equipment broke down and the Indianapolis Metropolitan Police Department even had to assist on one occasion. As a result of this scheme, Reed stole over $400,000 from the public insurance programs.
While pending trial for the health care fraud charge, Reed continued his criminal activity. Reed sent multiple false documents as well as a stolen identity to a finance company in an attempt to obtain an additional $30,000. Reed did so while falsely representing he was the owner of a company he was not, and purported to pledge that company's accounts as collateral for the loan.
In sentencing Reed, District Court Judge Jane Magnus-Stinson focused on the harm perpetrated on Reed's customers, and his continuing criminal conduct in saying that Reed had failed to demonstrate a respect for the law and needed a strong sentence to deter him from further fraudulent behavior.
This case was investigated by the Federal Bureau of Investigation, U.S. Department of Health and Human Services, Office of Inspector General, and the Indiana Attorney General’s Office.
"This case not only emphasizes the cooperation between federal, state and local law enforcement agencies to investigate and prosecute those who engage in this type of crime, but also reveals the damaging effects of such crimes on our community which will not be tolerated," said FBI Special Agent in Charge W. Jay Abbott.
“Today's sentencing sends a clear message to those who would exploit federally funded health care programs that they will be held accountable,” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General, Chicago Region, which oversees the State of Indiana. “The OIG will continue to work with our Federal and state partners to protect valuable taxpayers’ resources and ensure the integrity of the Medicare and Medicaid programs.”
“The investigative work by my office’s Medicaid Fraud Control Unit and our federal colleagues determined this defendant violated the public trust by billing the Medicaid program for ‘new’ equipment that was in fact used. This conduct will not be tolerated, and we appreciate U.S. Attorney Minkler’s office resolving this case and holding this defendant accountable through requiring restitution,” said Indiana Attorney General Greg Zoeller, whose office operates the MFCU where fraud complaints can be filed at this link: http://www.in.gov/attorneygeneral/2453.htm
According to Assistant U.S. Attorney Bradley P. Shepard who prosecuted this case for the government, Reed faces two years of supervised release following his sentence.
Fishers investment broker sentenced in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today the sentencing of a Fishers man who stole millions of dollars from unsuspecting investors, many who lost their life’s savings. John K. Marcum, 51, was sentenced by U. S. District Judge Jane Magnus-Stinson to 66 months in federal prison and remanded to the Bureau of Prisons to begin his sentence immediately.
“The United States Attorney’s Office is cracking down on white collar fraud,” said Minkler. “In order to protect the financial markets of this country, those who lie, cheat, and steal from unsuspecting investors must go to federal prison. Mr. Marcum stole the life’s savings and retirement accounts of his clients to fund a lavish lifestyle. Judge Magnus–Stinson realized this and sent Mr. Marcum directly to federal prison for five and one half years.”
In 2010, Marcum founded the investment firm Guaranty Reserves Trust, LLC (GRT) operating in the Indianapolis area. He promised investors that he would use their money to achieve significant returns by trading securities, stocks and bonds with no fees being charged. Marcum arranged for investors to deposit money into various accounts and self-directed IRA’s which allowed him to control the investors’ money.
From 2010 through 2013 Marcum solicited millions of dollars from 17 investors. Marcum represented himself and GRT to be worth millions of dollars with celebrity clients and traded very conservatively. He promised to earn high rates of return with no risk to the investors’ principle. In reality he failed to invest the money as promised and converted it for personal gain. Marcum comingled the funds to finance a personal line of credit, highly speculative start-up ventures, luxury cars, rent on a Geist-area home, a vacation at a Playboy Club in Los Angeles, California, and other gifts.
At sentencing, one 70 year-old widow told Judge Magnus-Stinson she gave Marcum $600,000 from a lawsuit related to the accidental death of her husband with nothing to show for it. Judge Magnus-Stinson described Marcum’s use of the victim’s money for “vanity business ventures” as typical of the narcissism the court sees in fraud schemes. Six victims testified they will be working for the rest of their lives because Marcum stole their life’s savings.
This was a joint investigation with the Federal Bureau of Investigations and Internal Revenue Service Criminal Investigation.
W. Jay Abbott, FBI Special Agent in Charge stated, “Investment fraud schemes can take many forms, but ultimately lead to the loss of innocent victims’ hard earned money. There is a persistent need to diligently investigate these types of crimes, and the FBI will continue to work closely with our partner agencies to ensure criminal activity is identified, investigated, and disrupted.”
“IRS Criminal Investigation is committed to protecting the American taxpayers by following the money and holding individuals who violate the public trust accountable for their actions,” said IRS Criminal Investigation, Special Agent in Charge Stephen Boyd. Mr. Marcum’s sentencing sends a loud message that defrauding individuals of their hard earned savings will not be tolerated. IRS Criminal Investigation will continue to follow the money and protect the American public.”
According to Winfield D. Ong, Criminal Chief for the United States Attorney’s Office, who prosecuted the case, Marcum must make restitution of $3.9 million to the victims and serve three years of supervised release after his sentence.
Tips for Consumers:
- Be cautious of unsolicited offers to invest.
- Don’t believe everything you’re told. Take time to do your own research on the investment’s potential—and on the person making the offer.
- Be wary of investment opportunities that offer unusually high yields.
- Check with federal and state securities regulators to find out if there are any complaints against the company or person you are considering doing business with.
- Request written financial information—such as a prospectus, annual reports, or financial statements—then compare the written information to what you were told.
- Check with a trusted financial adviser, broker, or attorney about any investments you are considering.
- And if you think you’ve been scammed, report it to the Securities and Exchange Commission, your state’s securities regulator, or a law enforcement agency.
For more information go to www.FBI.gov
Department of Justice awards grants to IMPDRead the Press Release
Indianapolis – U. S. Attorney General Loretta Lynch and United States Attorney Josh J. Minkler announced today funding awards from the Community Oriented Policing Services (COPS Office) to the Indianapolis Metropolitan Police Department. A series of grants totaling over $2.5 million was announced; the largest of which is a $1.875 million grant awarded through the COPS Hiring Plan (CHP). CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer hires for three years and will allow IMPD to hire 15 additional officers to patrol neighborhood streets.
“These grants reaffirm my promise to support IMPD and all our law enforcement partners to reduce violent crime in Indianapolis,” said Minkler. “However, this cannot be accomplished with funding and more officers alone. It is the responsibility of every citizen in this community to work toward a safer Indianapolis. When one of us becomes a crime victim, we should all feel the pain.”
“We are grateful to receive the COPS grant as it will help us augment hiring next year and help us as we plan for subsequent years to sustain those numbers,” said Department of Public Safety Director Dr. David Wantz.
“We are grateful to be awarded four federal grants to continue our partnerships within the community. I would like to personally thank the COPS Office for this prestigious award. In our continual effort to be efficient, these grants are instrumental in allowing IMPD to put more officers on the streets,” said Chief Rick Hite. “Additional officers will enable us to continue to combat crimes and build stronger community partnerships within our neighborhoods, all of which are mentioned as pillars in the President’s 21st Century Policing report.”
The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Other grants awarded to Indianapolis include:
$294,000 for Project Safe Neighborhoods, an anti-gun and gang initiative
$250,000 for a criminal justice and mental health collaboration
$150,000 to fight crime in hot spot areas of Indianapolis
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Matthew P. Brookman selected as United States Magistrate JudgeRead the Press Release
PRESS RELEASE
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF INDIANA
Laura A. Briggs, Clerk
46 East Ohio Street
Room 105
Indianapolis, IN 46204
Matthew P. Brookman selected as United States Magistrate Judge
INDIANAPOLIS, Indiana (September 14, 2015): The Honorable Richard L. Young, Chief Judge of the United States District Court for the Southern District of Indiana, is pleased to announce the selection of Evansville attorney Matthew P. Brookman as United States Magistrate Judge. Mr. Brookman’s appointment will be made upon completion of a Federal Bureau of Investigation background check, a process that can take a few months. Once appointed, he will fill the vacancy created by the impending retirement of The Honorable William G. Hussmann, who has served the court since April 1988 and will retire on January 31, 2016.
The duties of Magistrate Judges in the Southern District of Indiana are demanding and wide-ranging, and Mr. Brookman will conduct preliminary proceedings in criminal cases; preside over trial and disposition of misdemeanor cases; conduct various pretrial matters and evidentiary proceedings on delegation from a district judge; and preside over trial and disposition of civil cases upon consent of the litigants. Mr. Brookman will primarily serve in the Evansville Division of the Southern District and travel to the other divisional offices of the Court to hold proceedings and conduct settlement conferences.
Mr. Brookman is presently employed by the Office of the United States Attorney for the Southern District of Indiana, where he serves as the Chief of the Office’s Drug and Violent Crime Unit and Lead Organized Crime and Drug Enforcement Task Force Attorney. He is also a member of the United States Attorney’s Executive Committee, Capital Case Coordinator for the Southern District of Indiana, and has served as a Chair and a Member from 2011 until 2015 of the United States Attorney’s various Hiring Committees. In 2010, Mr. Brookman received the Director’s Award from United States Attorney General Eric Holder, in Washington, DC, for superior performance as an Assistant United States Attorney, for his work on the United States v. Jarvis Brown, et al. quadruple homicide prosecution.
Mr. Brookman was born in St. Louis, Missouri and graduated with a Bachelor of Arts degree in 1990 from DePauw University, where he majored in economics and history. He also studied abroad at the University of Essex in Colchester, England. He obtained his law degree from the Washington University School of Law in May 1993, and was admitted to the bar in Missouri that same year. He has since been admitted to practice in numerous state and federal courts, including Indiana.
After spending the early part of his career in private practice and with the Office of the Prosecuting Attorney of Jefferson County, Missouri, Mr. Brookman joined the Office of the United States Attorney for the Western District of Missouri in 1999. Mr. Brookman then moved to the Office of the United States Attorney for the Southern District of Indiana in 2002, where he has remained. Additionally, Mr. Brookman is an adjunct professor at the University of Evansville and has also taught at the University of Southern Indiana, the United States Department of Justice National Advocacy Center, and the Southwest Indiana Law Enforcement Academy.
Mr. Brookman and his wife Michele live in Newburgh, Indiana with their three children: Katie, 18, a freshman at Indiana University; Adam, 14, a freshman at Castle High School; and Andrew, 7, a first grader at John H. Castle Elementary School.
Magistrate Judges are appointed by the Judges of the United States District Courts for terms of eight years, and are eligible for reappointment to successive terms.
Bedford man sentenced for mail fraud, money laundering, and filing a false federal tax returnRead the Press Release
Evansville – Josh J. Minkler, United States Attorney, announced today that Blakely A. Clements, 33, of Bedford, Indiana, was sentenced to 15 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to Mail Fraud, Money Laundering and Filing a False Federal Tax Return. This case was the result of an investigation by the Secret Service, the Internal Revenue Service Criminal Investigation Division, and the Indiana State Police and the Daviess County Indiana Prosecuting Attorney.
“Emergency grants are meant to help people get back on their feet after a natural disaster, not line the pockets of public officials,” said Minkler. “Those who choose to put personal greed ahead of community needs will face the hammer of federal prosecution.”
On September 8, 2015, Clements admitted to the Court that he participated in a scheme to defraud the Daviess County Long Term Recovery Committee (DCLTRC) and to obtain money by means of false and fraudulent pretenses using the United States Mail. While acting as the financial director of the DCLTRC, Clements submitted invoices to Non-profit Processing and Accounting Services to comply with conditions of a grant the Committee received from United Way of Indiana. The purpose of the grant was to provide financial assistance to Daviess County victims in repairing flood damage. Clements submitted invoices that appeared to be for the benefit of flood victims when in fact the expenditures were made to acquire home improvement materials and other items for the personal benefit of Clements in the amount of $89,500.
Clements admitted to money laundering by paying his personal Home Depot Citibank credit card using funds obtained from the DCLTRC and deposited a refund check from the credit card into his personal account for $11,352.21. Finally, Clements also admitted to filing a false federal tax return for the year 2010, because he did not report as income any of the funds derived from the DCLTRC.
“Today’s sentencing of Mr. Clements sends a clear message that defrauding the people of Daviess County comes with a price,” said IRS Special Agent in Charge Steven Boyd. “IRS Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard. IRS Criminal Investigation will continue to work as a team with the United States Attorney’s Office, our federal and state counterparts to follow the money and stop corruption.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Judge Young imposed three years supervised release following Clements release from prison and order restitution in the amount of $114,670.80.
Evansville man sentenced for possession of child pornographyRead the Press Release
Evansville – United States Attorney Josh Minkler announced today that Richard Brandon Payne, 35, of Evansville, Indiana, was sentenced to 63 months (over five years) in federal prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force and the Evansville Police Department.
On July 7, 2015, at the time of his guilty plea, Payne admitted opening a Google Drive account using his e-mail address and uploading child pornography images into his account. He used a software application to search for and save images of child pornography by using search terms including “kids” and “preteen.” Payne saved some of the sexually explicit images to his Google Drive data storage account.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Payne’s release from prison. Payne must register as a sex offender, must not have unsupervised contact with minors, and also must participate in a sex offender treatment program while on supervision.
This case was brought as a part of Project Safe Childhood. The Department of Justice launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood uses federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please see www.projectsafechildhood.gov/.
Violent Indianapolis heroin trafficking organization dismantledRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today the arrests of 11 members belonging to a drug trafficking organization which distributed heroin and methamphetamine in the Indianapolis area. Further, they ordered acts of violence against those perceived as competitors.
“This is the face of organized crime today. These defendants are some of the most violent in Indianapolis,” said Minkler. “Not only did they sell large quantities of narcotics but most had prior felony convictions, possessed and used firearms and threatened acts of violence in furtherance of their crimes.”
Beginning in December 2014 through August 2105, David McMichel, a/k/a White Boy, a/k/a David Webster 31, Indianapolis, allegedly ran a drug trafficking organization from his home on the Westside of Indianapolis. The McMichel Drug Trafficking Organization (MDTO) moved large quantities of heroin and methamphetamine from suppliers in Arizona to Indianapolis, Fort Wayne and other locations. The MDTO obtained most of its drug supply from Fernando Vaca-Mata, 32, and Jose Prieto, 33, to be redistributed to lower level dealers.
As leader of the MDTO, McMichel negotiated with suppliers to obtain pound quantities of the narcotics. Further, he distributed and supervised the delivery of the narcotics and acquisition of weapons, collected proceeds from the narcotics sales and arranged to store the narcotics in stash houses around Indianapolis.
Throughout the months’-long investigation, McMichel ran the MDTO from his home while on house arrest serving a sentence for his third felony conviction. According to the complaint, a court authorized wiretap intercepted McMichel ordering shootings. McMichel stated he had a “list a block long” of individuals he wanted dead. He had members of the MDTO obtain photographs from Facebook of some of his intended targets.
Based on the wiretap, law enforcement intervened and arrested James Caldwell, a/k/a Bo, who was in possession of a loaded 9mm handgun before any acts of violence could take place. Caldwell was on probation for manslaughter and could not legally possess a firearm.
Arrest and search warrants were served early this morning by federal, state and local law enforcement agencies. At 1220 N Groff Av, a suspect fired a handgun through the door of the bedroom she was occupying. Officers did not return fire and no one was injured. Over the nine-month investigation, 19 firearms, $160,000 in cash and several pounds of heroin, and methamphetamine were confiscated. Also recovered were two ballistic vests. Law enforcement documented 36 drug transactions in the furtherance of the drug organization’s goal of infesting the westside with heroin and methamphetamine.
Also arrested:
Sophia Gutierrez, 33
Steven Nichols, a/k/a Stevie, 39
Shewanna Jackson, 32
Tyrel Barker, a/k/a T, 48
James Caldwell, a/k/a Bo, 37
Michael Wrightsman, a/k/a Mike Mike, 42
Forest Toliver, a/k/a Bear, 33
Beronta Smith, a/k/a B12, 36
Jacob Dodson a/k/a Jake, 24, remains a fugitive
Steven Eldridge, Jr. a/k/a Little Stevie, 21, remains a fugitive.
“Violence and drug dealing go hand in hand” said DEA Assistant Special Agent in Charge Greg Westfall. “Attacking heroin traffickers in unison with our outstanding law enforcement partners is DEA’s number one priority.”
“The Indianapolis Metropolitan Police Department continues to work with our state and federal partners to reduce violence and drug trafficking in Indianapolis,” said Chief Rick Hite. “Today’s operation ends a long-term, sophisticated investigation with the arrest of twelve suspects involved in drug trafficking within our community. We will continue our commitment to make Indianapolis a safe place to work and raise a family.”
This case was jointly investigated by the Drug Enforcement Administration, Hamilton-Boone County Drug Task Force, Bureau of Alcohol Tobacco Firearms and Explosives, Indianapolis Metropolitan Police Department, Metro Drug Task Force and the Marion County Prosecutor’s Office.
According to Assistant United States Attorney Jeffrey D. Preston who is prosecuting this case for the government, all defendants face decades of time in federal prison if convicted.
A complaint is merely a charge and all defendants are presumed innocent until proven guilty in a federal court.
Jared Fogle co-defendant formally charged with child exploitation and distribution of child pornographyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced that Russell C. Taylor, 43, Indianapolis, was charged by criminal information today with 12 counts of child exploitation involving 12 minor children in Indiana. He was also charged with one count of distributing and receiving child pornography through an alleged conspiracy with Jared Fogle. Taylor has filed a plea agreement with the court acknowledging his crimes.
“Protecting those who cannot protect themselves will always be a priority of this office,” said Minkler. “Adults who sexually exploit children by producing child pornography knowingly cause vast harm to their victims and should expect appropriately strong punishment.”
Indiana State Police detectives received information that Taylor was in possession of illegal pornographic images and served a search warrant at his home on April 29, 2015, along with law enforcement officers from the Indianapolis Metropolitan Police Department and the FBI. The investigator used a mobile forensic laboratory to conduct the search of Taylor’s home. The investigators found a cache of sexually explicit photos and videos Taylor produced by secretly filming minor children at this home and they obtained a second search warrant for child pornography. In total, the investigators found over 400 videos of child pornography in computers, cellular phones, and storage media recovered from a home office. Taylor is charged with producing these videos inside his current and former Indianapolis residences using hidden cameras, during the period between March 2011 and January 30, 2015.
According to the facts Taylor admitted in the written plea agreement filed today, on multiple occasions between March 2011 and April 2015, he used multiple hidden cameras in his residences to produce child pornography involving 12 minors. He knew that the victims in these images or videos were under the age of 18 years. He also knew their identities.
Taylor and his friend Jared Fogle discussed among themselves the fact that Taylor was secretly producing sexually explicit videos of minors in Taylor’s current and former residence. Fogle chose to benefit from such production by obtaining access to a significant amount of such material over the time period. However, Fogle did not produce any of this material himself.
None of the minors in the videos were aware that they were being filmed. Rather, Taylor produced the videos using multiple hidden cameras set up in his residences and oriented to show them nude, changing clothes, or engaged in other activities.
Taylor also obtained from the Internet and provided Fogle with child pornography he downloaded from Internet sources which may be classified as commercial material produced by other persons. The unidentified victims in these commercial images and videos were as young as approximately six years of age.
During the investigation, Taylor admitted that child pornography was recovered during a search of his residence, where it was found in computer equipment, storage devices, cameras and other media analyzed by the Cybercrime Section of the Indiana State Police. This included the material involving child victims 1 through 12 as well as the commercial child pornography.
All of the images and videos included a lascivious exhibition of the genitals or pubic area of the relevant minor victim, while some material also included other sexually explicit conduct depending upon the minor involved.
On multiple occasions, Taylor provided Fogle with access to the images or videos by sharing them on a computer that Taylor owned. They frequently travel together for business trips. Taylor and Fogle were close friends. Taylor also provided Fogle with some images and videos through text messages and a thumb drive.
Jared Fogle, who was charged by this office on August 19, 2015, has signed a plea agreement and has a November 19, 2015 sentencing date before U.S. District Judge Tanya Walton Pratt.
According to Senior Litigation Counsel Steven DeBrota, who is prosecuting this case for the government, Taylor had admitted to all 13 charges. Under the terms of the plea agreement, he cannot ask the court for a sentence below 15 years of imprisonment. The government can ask for a sentence of up to 35 years of imprisonment, followed by supervised release for the remainder of Taylor’s life. However, the court will ultimately determine the sentence to impose. He is presently detained in the custody of the U.S. Marshal
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resource.”
A criminal information is only a charge. The defendant is presumed innocent until proven guilty in federal court.
Marvin Sharp charged with Child Molesting, Sexual Misconduct with a Minor and Possession of Child PornographyRead the Press Release
(Indianapolis, Ind.) – Marion County Prosecutor Terry Curry and United States Attorney Josh J. Minkler announced today the filing of formal charges against Marvin Sharp for child molestation and possession of child pornography. Sharp has been charged with four counts of Child Molesting (two C Felonies and two Level 4 Felonies) and three counts of Sexual Misconduct with a Minor (Level 5 Felonies) by the Marion County Prosecutor’s Office for allegations of inappropriate behavior with a young woman while acting as her gymnastics coach. Sharp has also been charged with knowing receipt of child pornography and knowing possession of child pornography by the United States Attorney’s Office.
“It is a parent’s worst nightmare that someone whom we entrust with care and guidance of our children -whether a coach, teacher, or otherwise - would abuse that trust and harm our children. Anyone who would harm our children in those circumstances, as we have alleged here, will be held fully accountable for their crimes,” Prosecutor Curry stated.
“Protecting our children has been and will remain a top priority in this office,” said Minkler. “Those who prey on the vulnerable, who cannot protect themselves, can count on the full wrath of state and federal prosecution.”
According to the probable cause affidavit filed in Marion County Superior Court, Sharp is accused of taking inappropriate photographs and inappropriately touching a young woman on many occasions while he was her gymnastics coach. According to the young woman, Sharp frequently told her not to tell her parents about photo-shoots and physical therapy sessions where the inappropriate touching occurred. The alleged acts took place at the defendant’s place of business, Sharp’s Gymnastics Academy, in Indianapolis as well as during an out-of-state trip that the victim and Sharp took together as competitor and coach for a gymnastics event.
Child pornography files were allegedly discovered on computers belonging to Sharp as a result of digital and forensic evidence seized during the execution of search warrants on Sharp’s home and Sharp’s Gymnastics Academy. According to the criminal complaint filed in U. S. District Court, thousands of sexually explicit images of minors were found in a safe in his home as well as images in a file cabinet at his gymnasium. The images displayed minor boys and girls in sexually explicit poses.
Anyone with information concerning additional potential victims is encouraged to call and report to 1-877-ISP-1TIP (1-877-477-1847). Messages left at this hotline will be directed to investigating officers.
A charge of a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
NOTE: The state charging information and probable cause affidavit, federal complaint, and mug shot of Marvin Sharp are attached.
Jared Fogle charged with child pornography distribution and repeatedly engaging in commercial sex acts with minorsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the filing of formal charges against Jared S. Fogle for distributing and receiving child pornography, and conspiring to do so, as well as repeatedly traveling to engage in commercial sex acts with underage minors. Fogle, 37, of Zionsville, Indiana, was charged by Information and has notified the U.S. District Court that he will plead guilty to all charges. He had his initial appearance before a magistrate judge earlier today and was released on home detention with GPS monitoring and other conditions. The case was the result of a joint state, local and federal investigation by the Indiana State Police, the Indianapolis Metropolitan Police Department, the Federal Bureau of Investigation, and the Indiana Internet Crimes Against Children Task Force, with assistance from the Marion County Prosecutor’s Office.
According to Minkler, “Mr. Fogle has admitted in court pleadings that he received child pornography involving multiple minors living in Indiana and other countries over the course of several years. His child pornography crime began when he learned that alleged co-conspirator Russell Taylor was sexually exploiting a 14 year old girl in March 2011. At that time, Mr. Fogle did nothing to stop the abuse or report it to authorities, but chose instead to receive and repeatedly view the child pornography involving the girl and those other minors produced by his alleged co-conspirator in the years that followed. It total, Mr. Fogle admitted in court pleadings filed today that his actions caused the sexual victimization of a total of 12 minors in Indiana before his co-conspirator’s arrest in April 2015. He preyed on minor victims who did not have the ability to protect themselves.”
Minkler further explained, “Mr. Fogle has also admitted in court papers that he repeatedly traveled to other states to engage in commercial sex acts with victims he knew were underage minors. This criminal conduct began years before his child pornography activities and did not involve Taylor. Such activities have devastating effects in the lives of minors subjected to such sex trafficking. Federal law provides strong punishment for engaging in commercial sex acts with minors under the age of 18 years or producing child pornography involving any minor under the age of 18 years. We will remain steadfast in our dedication to protecting children from offenders like him.”
According to the detailed charging Information and the admitted facts contained in Plea Agreement, between March of 2011, and January of 2015, Russell C. Taylor (who was federally charged in a separate case in May 2015) allegedly produced child pornography involving 12 minor victims in Indiana. Taylor secretly produced the images and videos of these minors, who were between 9 and 16 years old. The victims were filmed in Taylor’s house using multiple hidden cameras which were concealed in clock radios and positioned so they would capture the victims changing clothes, showering, bathing or engaging in other activities. Taylor allegedly then shared some of these images and videos with Fogle, who knew the victims were minors. During conversations and text messages with Taylor, Fogle made comments approving of the activity and discussed some of the minors by name. However, Fogle did not receive all of the material Taylor allegedly produced.
Fogle also allegedly received commercially produced child pornography videos from Taylor, who allegedly obtained the material through internet sources. The videos were made outside of the United States by other persons and showed the sexual abuse of victims as young as six years old. Fogle viewed some of these video files on a computer provided by Taylor as well as through text messages and a thumb drive. On one occasion, Fogle allegedly displayed some of these videos to another person using a thumb drive provided by Taylor.
From 2007 until June of 2015, Fogle repeatedly engaged in Internet social networking and traveled to other states for the purpose of engaging in commercial sexual acts with at least two underage minors. He did this using an email account, social networking websites containing advertisements for escorts or erotic services, online messaging, and text messages. On November 3, 2012, Fogle traveled to New York City and engaged in commercial sexual acts with a 17 year old female. This occurred at the Plaza Hotel, where Fogle was staying. The following day, Fogle sent text messages to the victim offering to pay her a fee, if she could find another underage girl to have sex with him. During the text discussions, Fogle stated he would accept a 16 year old girl, while indicating the younger the better.
On December 27, 2012, Fogle sent text messages to the same 17 year old victim, offering a fee if she could find a young minor to engage in sex. He provided the victim with an email address and asked her to send him pictures of herself. She complied and sent three, two of which were pornographic. Fogle acknowledged receiving the photos and expressed his approval.
In January 2013, Fogle engaged in commercial sex with the same victim at the Ritz Carlton Hotel in New York City, where he was staying. The victim provided Fogle with her true age when they first met and he knew that she was not yet 18 years old. The meetings with the victim were arranged through Internet communication and text messages to discuss sexually explicit details and financial terms.
Court filings also stated that Fogle engaged in commercial sex acts with a second underage minor in New York City. At other times, Fogle offered to pay adult prostitutes a finder’s fee if they could provide him underage minors for commercial sex acts with him, including minors as young as 14-15 years old.
Indiana State Police Superintendent Doug Carter said, “This entire investigation started with one lone tip to a state police officer. From that point the full resources of the Indiana Internet Crimes Against Children Task Force were brought to bear. This included investigators and forensic examiners from the state police, the Indianapolis Metro PD and the FBI.” Carter concluded, “This clearly demonstrates celebrity status does not serve as a shield from criminal prosecution, especially when such despicable crimes are perpetrated against children.”
“In our society, children are our most precious resource,” said IMPD Chief Rick Hite. “It is our collective responsibility to protect them from predators and bring to justice anyone who causes them hurt, harm, or danger.”
“As with all child pornography cases, the FBI investigates these cases with a sense of urgency due to the extreme vulnerability of the victims involved; our children,” said FBI Special Agent in Charge, W. Jay Abbott. “This case demonstrates that commitment to investigate those who would possess child pornography. The FBI looks forward to continuing its work on such matters with the United States Attorney’s Office, the Indiana State Police and the Indianapolis Metropolitan Police Department.”
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, under the terms of the plea agreement, Fogle faces a mandatory minimum sentence of at least 5 years of imprisonment, a fine of up to $500,000, and supervised release after serving his prison sentence for at least 5 years and up to the remainder of his life. There is no agreed sentence in the case and the government may request of up to 151 months of imprisonment. However, Fogle may not request a sentence below 5 years of imprisonment.
The Plea Agreement also requires Fogle to pay a total of $1,400,000 in restitution to the 14 victims in the case, 8 of whom are still minors, and forfeit assets of $50,000. This is the largest amount of restitution ever ordered for a child pornography or sex trafficking case in the history of the Southern District of Indiana. The victims will be able to use these funds to pay for counseling and treatment to combat the debilitating life effects of these crimes.
The facts stated in the Information are allegations only, and Fogle and Taylor are presumed innocent until proven guilty beyond a reasonable doubt. While Fogle has signed a plea agreement and notified the Court he will plead guilty as charged, the hearing to accept his plea of guilty has not yet been scheduled. He will appear before U.S. District Court Judge Tanya Walton Pratt.
Camby Indiana man indicted on drug and money laundering charges using underground websitesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today the indictment of a Camby, Indiana, man for federal charges of drug trafficking and money laundering. Lee D. Gray, 40, used the alias “Supremesmoke” to sell narcotics over underground websites on the Deep Web.
“Heroin dealers cannot use the Internet to hide their illegal activity any longer,” said Minkler. “Our investigators have some of the most innovative technology available to make certain our cyber world remains safe from drug trafficking.”
Beginning in June 2014, Gray is alleged to have used an underground website known as Black Bank, to sell quantities of heroin and then use bitcoins, as virtual currency for payment. Black Bank was designed to facilitate illegal commerce by masking the identity of its users and is not accessible through traditional search engines. Gray allegedly offered heroin in gram quantities and accepted bitcoins as payment.
Gray’s seller page used the alias, “Supremesmoke” on Black Bank and featured photos of drugs such as heroin and cocaine. The potential customer chose the quantity and type of drug they wanted and placed an order transferring bitcoins to Gray’s account. A typical order of .5 grams of heroin cost approximately $100 to $125 and did not include shipping. Gray typically offered express shipping for $25 to $30 in addition to free first class shipping. He used the U.S. Postal Service, Priority Express Mail parcels and standard sized envelopes. Gray often labeled the parcels with Indianapolis-area return addresses for businesses that had no connection to him, in order to disguise the true origin of the delivery.
Gray maintained multiple bank accounts under his name, his wife’s name and various businesses. Through these accounts, he received wires from foreign companies that offered bitcoin exchange services. Gray also allegedly exchanged some of the bitcoins he received from selling heroin for U.S. dollars by transferring bitcoins to others in exchange for their sending him cash or the equivalent in the mail.
This case is being investigated by the Drug Enforcement Administration, United States Postal Inspection Service, Internal Revenue Service Criminal Investigation, Metro Drug Task Force, Lawrence Police Department, and the Indiana State Police.
“The U.S. Postal Inspection Service takes very seriously its mission to deter the illegal use of the mails for any criminal activity,” said Postal Inspector in Charge, E.C. Woodson. “These crimes negatively impact each and every community and household, and we stand committed to working together to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail thereby violating the sanctity of the seal.
Drug Enforcement Administration Assistant Special Agent in Charge Greg Westfall stated, “With the rise of heroin overdoses and deaths, the DEA remains committed to investigating those involved in heroin trafficking as a priority. The DEA appreciates the collaborative efforts from all its law enforcement partners.”
“When IRS Criminal Investigation gets involved, the drug dealer’s profits go up in smoke,” said IRS Criminal Investigation Special Agent Stephen Boyd. “IRS CI plays a unique role in targeting the profit and financial gains of narcotics traffickers on many levels. As a team, law enforcement will continue to pursue criminals operating in the cyber world and trace their illegal proceeds in the form of virtual currency.”
According to Assistant United States Attorneys Cindy J. Cho and MaryAnn T. Mindrum, who are prosecuting this case for the government, Gray faces up to 20 years in prison on each count if convicted.
Former Terre Haute prison guard sentencedRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that Edward B. Tunwar, 55, was sentenced to prison today by U.S. District Judge Jane E. Magnus-Stinson for his role in smuggling contraband into the United States Penitentiary in Terre Haute.
Tunwar was employed as a correctional officer at the United States Penitentiary in Terre Haute from June 2013 through December 16, 2013. During that time, Tunwar supervised the operations of the kitchen in the penitentiary. While working in the kitchen, Tunwar provided a federal inmate with multiple cellular telephones and 130 packs of tobacco. On December 9, 2013, Tunwar smuggled an ounce of heroin into the penitentiary and delivered it to another federal inmate. Prison guards at the penitentiary seized the heroin inside of the prison.
Tunwar was sentenced to 52 months= imprisonment following his guilty plea to providing contraband in prison. Tunwar was also fined $1,000 and sentenced to one year of supervised release.
The investigation into Tunwar’s illegal activity was conducted by the Federal Bureau of Investigation and the Department of Justice Office of Inspector General.
Two men sentenced in federal court for firearms chargesRead the Press Release
Evansville – Josh J. Minkler, the United States Attorney, announced today that two men were sentenced in federal court by U.S. District Chief Judge Richard L. Young for firearms charges.
“This office remains committed to keeping our neighborhoods safe by taking violent felons off our streets,” said Minkler. “Those individuals who choose to carry illegal firearms and live a life of crime should plan to spend a great deal of time in federal prison.”
Danyon Dowlen, 28, Clarksville, TN, was arrested in March 2013, on South Morton Street in Evansville on an outstanding warrant for murder from Clarksville, Tennessee. Federal, state and local law enforcement found Dowlen in a residence and when they knocked, he ran to the rear of the house. When the residence was cleared, officers found a fully loaded 9mm handgun in the house which belonged to Dowlen. He had multiple felony convictions from Montgomery County, Tennessee, which include aggravated assault, escape and several narcotics charges. Dowlen was sentenced to 10 years in prison.
Terronta Booker, 27, Evansville, was sentenced to 41 months after his conviction in May 2015, for being a felon in possession of a firearm. In September 2014, Booker was shot by an Evansville Police Officer after he was seen exchanging gunfire with another individual on South Kentucky Street. Booker threw a .380 caliber handgun down as officers pursued him. It was recovered a short time later. Booker has a felony conviction for armed robbery and criminal confinement from Vanderburgh County in 2010.
According to Assistant U.S. Attorney Lauren Wheatley who prosecuted this case for the government, Dowlen must serve five years of supervised release after serving their sentences; Booker must serve three.
Feds seeking fugitives in block burner investigationRead the Press Release
Indianapolis—Federal law enforcement is still seeking the whereabouts of two federal fugitives who escaped capture from this week’s massive operation to arrest members of the Block Burner gang which operated on the East side of Indianapolis. William Edward Dodd, 32, and Eskivel Reynosa De La Cruz, 28, were last seen in Indianapolis on July 21, 2015, and are considered armed federal fugitives.
According to a federal criminal complaint filed on July 22, 2015, Dodd received five to ten kilograms of cocaine on multiple occasions from Dominican Republic sources of supply identified as Eskivel Reynosa De La Cruz and Gerardo Garcia. Law enforcement is still seeking to locate and arrest Dodd and De La Cruz.
When Dodd’s stash house located at 2566 S. Keystone Avenue was searched, agents recovered approximately $80,000 in cash and multiple packages of cocaine ready for resale. When Dodd’s residence was searched, agents found a loaded firearm and approximately $10,000 in cash.
United States Attorney Josh Minkler implored members of our community to come forward with any information that might lead to his arrest saying, “William Dodd is a is a threat to this and any other community he might be in. I am asking anyone who knows where he might be to call the FBI (317-595-4000), Crime Stoppers of Central Indiana (317-262-TIPS) or your local police department.”
A photo of Dodd and the criminal complaint detailing his criminal activity are attached to this release. No photo of De La Cruz is available. Dodd Wanted Poster (225.77 KB)
Eight sentenced in Southern Indiana methamphetamine trafficking caseRead the Press Release
Evansville – Josh J. Minkler, the United States Attorney, announced today the sentencing in United States District Court of the last defendant in a federal methamphetamine trafficking investigation. William H. Elder, 74, Evansville, was sentenced to life imprisonment without parole for his role in the drug conspiracy. Seven other co-defendants, including William Elder’s son, Mathew Elder, were also recently sentenced by U.S. District Chief Judge Richard L. Young.
“The Elders, made a living selling methamphetamine in the Evansville area,” said Minkler. “Both will spend the remainder of their life in federal prison with no possibility of parole. Others in Evansville who are thinking of distributing narcotics should think again.”
In April, 2015, both Elders were found guilty in federal court of conspiring to distribute methamphetamine. Testimony at trial determined the Elders were responsible for bringing over 50 pounds of methamphetamine to the Evansville area over a six month period. The meth was then redistributed by others in the conspiracy. Both Elders have significant criminal histories which include narcotic-related convictions. In total eight individuals have been sentenced. Others include:
- EVERETT TARR, 59, Evansville, sentenced on June 24, 2015 to 216 months imprisonment, followed by five years of supervised release.
- Terry Ward, 64, New Harmony, Indiana, sentenced on April 20, 2015, to l20 months of imprisonment, followed by five years of supervised release.
- Michael Clark, 56, Evansville, sentenced on July 22, 2015 to time served, followed by three years of supervised release.
- Brenda Deer, 49, Evansville, sentenced on April 21, 2015, to 120 months of imprisonment, followed by five years of supervised release.
- Lauri Cupp, 48, Evansville, sentenced on March 3l,2014, to 120 months of imprisonment, followed by five years of supervised release
- Michael Curinga, Jr., 44, Phoenix, Arizona, sentenced on December 9,2014 to 120 months of imprisonment, followed by five years of supervised release
- Matthew Elder, 44, Litchfield Park, Arizona, found guilty at trial on April 1, 2015, sentenced on July 1, 2015 to life imprisonment, followed by ten years of supervised release.
The case resulted from a 2012-2013 investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Evansville Vanderburgh County Joint Task Force, Posey County Sheriff=s Department, Texas Drug Enforcement Administration, and Texas Department of Public Safety into the distribution of methamphetamine from Arizona into southwestern Indiana.
According to Assistant U.S. Attorney Lauren M. Wheatley who prosecuted the case for the government, during the period of supervised release, all individuals must submit to drug testing.
Eastside gang dismantled in gun and drug arrestsRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler announced today that an Eastside gang has been dismantled as 20 of its members were arrested by federal, state and local law enforcement this morning. Over 525 agents, troopers, officers and support personnel served search and arrest warrants today in early morning raids in some of Indianapolis’ most challenged neighborhoods.
“Protecting our neighborhoods is a shared responsibility of all law enforcement agencies in Marion County,” said Minkler. “Preventing violent crime and holding those accountable who choose to terrorize our community remains one of this office’s top priorities.”
In late 2014, the FBI and IMPD began an investigation into a gang operating on the eastside of Indianapolis known as Block Burners. The gang of approximately 90 members operated in the area of East 42nd Street and North Post Road, which was in the heart of one of the Indianapolis Department of Public Safety’s focus areas. According to law enforcement officials, the Block Burner gang was one of the most violent operating in Indianapolis.
Through various investigative techniques, law enforcement quickly learned that the majority of the gang members were engaged in violence and were distributing pound-quantities of heroin, cocaine, marijuana and prescription pain pills. It was further learned that the gang members would routinely possess illegal weapons to carry out their illegal activities.
Today’s enforcement action included approximately 525 law enforcement personnel, 19 partner agencies and 19 SWAT teams from all around the state of Indiana and the Midwest. Search and arrest teams served 22 federal and state warrants at 32 different locations in two waves. Warrants today produced 21 firearms, multiple quantities of heroin, cocaine, marijuana and prescription pain pills as well as over $53,000 in cash.
Arrested for federal conspiracy to distribute heroin or cocaine include:
- David Williams, 36
- Fred Davidson, 32
- Damon Smith, 19, a/k/a Dumm
- Dustin Murry, 28, , a/k/a D-Rock
- Scott Foor, 34. A/k/a White Boy
- Mark Nelson, 29
- Donte York, 23
- Darrell Stennis, 26
- Aaron Garrett, 22, a/k/a Nanny
- Anthony Burgess, 22
- Brandon Jordan, 27, a/k/a B
- William Davenport, 25
Garrett, Jordan and Murry also face federal charges of possession of a firearm in furtherance of drug trafficking activity.
- Kevin D. Kyner, 32, a/k/a Kevin Leslie, faces federal narcotic and weapons charges.
Arrested for state narcotic and firearms charges include:
- Tremaine Tatum, 22
- William Patterson, 39
- Kevin Johnson, 27
- Dominque Burton, 27
- Khadijah Walker, 34
- Craig Cooper, 18
- Marcus Baxter, 26
- Tommie Jackson, 35
“The FBI recognizes the hard work and dedication of our close partners on the Safe Streets Task Force, to include the Indianapolis Metropolitan Police Department, the Indiana State Police, the United States Attorney’s Office, Fishers Police Department, Carmel Police Department and the Marion County Prosecutor’s Office,” said W. Jay Abbott, Special Agent in Charge of the FBI, Indianapolis. “Together, we conducted an extensive investigation, dedicated significant resources, and utilized a myriad of investigative techniques to disrupt the violent crimes perpetrated by this long standing gang. With today's enforcement action, the leadership, hierarchy, members and support network of this violent gang have been decimated. The citizens of Indianapolis can be assured the streets are safer and the FBI remains vigilant to combat violent crime wherever it may be.”
“We’ve identified key persons and areas entrenched in violence and drug activity within Indianapolis, said IMPD Chief Rick Hite. “Today is a shining example of the collaboration with our Federal, State and local partners while listening to the concerns within our community. These arrests serve as a reminder to those who wreak havoc on our community; that you will be investigated, and you will be arrested.”
“Strategic investigations such as this are key to dismantling the criminal enterprises which contribute to violent crime and illegal drug distribution in our community,” Marion County Prosecutor Terry Curry added. “We appreciate the cooperation of the law enforcement agencies, agents, troopers, officers and prosecutors involved in this investigation.”
Indiana State Police Supt. Doug Carter said, “To successfully conclude an investigation of this magnitude takes an incredible amount of manpower and coordination to ensure the safety of the community at large as well as the police officers executing the warrants.”
According to Michelle Brady who is prosecuting this case for the government, all defendants could spend decades in prison if convicted of all crimes.
A criminal complaint is only a charge and all defendants are considered innocent until proven otherwise in court.
Chief Judge Young sentences Arizona woman to 2 and ½ years in federal prison for white collar crimeRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that Drula Faye Fields, 62, Buckeye, Arizona, was convicted of stealing over $1 million from multiple health insurance providers. She was sentenced to 30 months in federal prison by U.S. District Chief Judge Richard L. Young.
“Health care fraud gets into the pockets of all of us through waste, theft and abuse,” said Minkler. “Ms. Fields and others like her should know, the U.S. Attorney’s Office will hold you accountable for this type of behavior.”
Fields was a medical biller for multiple doctors in the Chicago and Central Illinois area. She worked as the record keeping agent for Doctor’s Billing Service. One of the doctors she billed for had a practice in Peoria, Illinois, who primarily performed medical physicals for pilots. The doctor was certified by the FAA to perform the physicals for pilots who needed the examination to retain their license.
Beginning in December of 2010 and continuing until 2012, Fields sent approximately 68 false claims for pilot physical examinations which were never rendered. Two pilot visited the doctor three times each but Fields billed the health care providers for nearly ten times those visits. All total, health insurance companies were billed for over $1 million in fraudulent claims and diverted to an account controlled by Fields. She then squandered this money at casinos and on home and internet shopping.
This case was investigated by the Federal Bureau of Investigation, Anthem Insurance, and the Indiana State Police.
According to Assistant United States Attorney Bradly Shepard who prosecuted the case for the government, Fields was ordered to pay over $1,000,000 in restitution to victims and serve three years of supervised release after her sentence.
Army Soldier indicted for criminal sexual activity with a minorRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler announced today federal charges against Guangyu Ai, 32, of Arcadia, California. Ai, a Soldier in the United States Army, was previously stationed at Fort Campbell, Kentucky. Ai was indicted on one count of transportation of a minor with intent to engage in criminal sexual activity and four counts of travel with intent to engage in illicit sexual conduct.
“Protecting our children from sexual predators is a top priority of my office,” said Minkler. “Anyone who crosses state lines to engage in illegal sexual activity with a minor, should plan to spend many years in federal prison.”
According to the criminal complaint, Ai met the minor through a social media application and continued to communicate with her via text messages. After continued text messaging, the two met and knowing that the minor girl was only 13 years old, Ai pursued a sexual relationship with her. Ai travelled from Fort Campbell, Kentucky to the minor’s residence in Southern Indiana multiple times intending to have a sexual relationship. It is alleged that on one occasion, Ai picked up the minor and took her to a hotel in Kentucky.
Ai had his initial appearance in federal court in Evansville today and was detained. His trial scheduled for September 15, 2015.
This investigation was a collaborative effort between the Federal Bureau of Investigation, Spencer County Sheriff’s Department, Air Force Office of Special Investigations, and the United States Army Criminal Investigation Command.
According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, Ai faces not less than 10 years and up to life for the count involving transportation of a minor with intent to engage in criminal sexual activity, if convicted. In addition, Ai faces up to 30 years for each count for traveling with intent to engage in illicit sexual conduct, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Multi-state cargo theft ring busted in Southern IndianaRead the Press Release
New Albany – United States Attorney Josh J. Minkler announced the unsealing of a twenty-three count indictment charging eight individuals in an organized scheme to steal tens of millions of dollars in merchandise from shipments of cargo moving through the state of Indiana and elsewhere.
“Interfering with interstate commerce is a crime that affects us all through higher consumer prices and the disruption of product supply to retail outlets,” said Minkler. “Those who choose to engage in this type of theft will be held strictly accountable.”
This indictment is the culmination of a joint, multi-year investigation involving the Federal Bureau of Investigation, Kentucky State Police, Louisville (KY) Metropolitan Police Department, Wythe County (VA) Sheriff’s Department, Indiana State Police, Illinois State Police, Virginia State Police, Georgia Bureau of Investigation, Fayette County (OH) Sheriff’s Department, Oklahoma City (OK) Police Department, and the Tennessee Highway Patrol, among others. Two private entities, CargoNet and the National Insurance Crime Bureau, also significantly assisted in the investigation.
As alleged in the indictment, between August of 2012 and May of 2015,
CARLOS ENRIQUE FREIRE-PIFFERRER, 36, Louisville,
JUAN PEREZ-GONZALEZ, 41, Louisville,
EDUARDO HERNANDEZ, 52, Miami,
MARIO HERNANDEZ-OQUENDO, 37, Miami,
YOEL PALENZUELA-MENDEZ, 40, Miami,
ORLIS MACHADO-CANTILLO, 44, Louisville,
MIGUEL MOMPIE, 47, Louisville,
RITZY ROBERT-MONTANER, 25, Louisville,
conspired to and stole millions of dollars in cargo being transported in interstate commerce by semi-tractor trailers. The group would then transport the stolen merchandise to locations in Kentucky, New Jersey, Florida, and elsewhere, and sell the stolen merchandise for financial gain.
In carrying out the wide-ranging scheme, it is alleged that the defendants and their co-conspirators traveled from various locations throughout the United States to Virginia, Illinois, Indiana, Kentucky, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, and other states to steal products that were being shipped in interstate commerce. Specifically, it is alleged that the defendants surveyed distribution facilities used by various national companies to ship their products. The defendants would then locate and follow semi-tractor trailers leaving the distribution facilities until the driver of the cargo load would stop to rest or refuel his/her truck. The defendants would then act in concert to steal the entire semi-tractor and trailer loaded with merchandise.
In many cases, the defendants would abandon the stolen tractor a short distance away after attaching the stolen trailer to a tractor owned/operated by one of the members of the theft group. Many times the defendants would quickly paint over any logos on the stolen trailer in an effort to conceal the identity of the trailer and evade law enforcement detection.
According to the indictment, on 11 separate occasions this group stole cargo loads traveling within the Southern District of Indiana and/or used interstate highways within the district to transport the stolen merchandise to other states. Stolen cargo shipments are alleged to have included computers and computer equipment, cellular telephones, electronics, appliances, perfume, cosmetics, clothing, baby formula, and tires. The value of merchandise stolen from or unlawfully transported through Indiana alone is alleged to exceed $17.5 million.
“This case not only emphasizes the cooperation between federal, state and local law enforcement agencies to investigate and prosecute those who engage in this type of crime, but also reveals the damaging effects of such crimes on our community which will not be tolerated,” said Special Agent in Charge of the Indianapolis FBI, W. Jay Abbott.
According to Assistant United States Attorney Matthew J. Rinka, who is prosecuting this case for the government, Ritzy Robert-Montaner, Mario Hernandez-Oquendo, and Eduardo Hernandez have been arraigned on the charges in New Albany before U.S. Magistrate Judge Van T. Willis. The remaining defendants will be arraigned at a later date.
The defendants face sentences of up to 10 years imprisonment for each count of possession or transportation of stolen goods in interstate commerce, and up to five years on the conspiracy charge. The defendants also face up to three years of supervised release following any term of imprisonment.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Arizona man sentenced to life without parole following drug conspiracy trialRead the Press Release
Over 50 pounds of methamphetamine couriered to Evansville from Arizona
EVANSVILLE - United States Attorney Josh J. Minkler announced today that Matthew Elder, 44, of Litchfield Park, Arizona, was sentenced to life without parole in federal prison by U.S. District Court Chief Judge Richard L. Young following a three-day jury trial in Evansville. The case resulted from a 2013-2014 investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Evansville Vanderburgh County Joint Task Force, Posey County Sheriff's Department, Texas Drug Enforcement Administration, and Texas Department of Public Safety into the distribution of methamphetamine from Arizona into southwestern Indiana.
“Mr. Elder made a living peddling drugs to individuals in the Evansville area, “said Minkler. “He will spend the rest of his life in a federal prison and my hope is, others like him get the message that we will not tolerate this type of criminal behavior in Indiana.”
On April 1, 2015, a federal jury found Matthew Elder guilty of conspiracy to distribute methamphetamine along with co-defendant, William Elder. During court testimony, it was learned that Matthew Elder was the source of methamphetamine in Arizona, which brought over 50 pounds of meth to the Evansville-area in a six month period. Elder arranged for the methamphetamine to be couriered to Evansville by various individuals for redistribution near Evansville. Matthew Elder faced mandatory life without parole based on having two prior drug convictions in Arizona and one in Evansville.
Matthew Elder’s co-defendant, William Elder (his father), was also convicted in April and faces sentencing later this month.
According to Assistant U.S. Attorney Lauren Wheatley, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release on Elder if he is ever released from prison. During that time, Elder must submit to regular drug testing and treatment.
Two Indianapolis men sentenced for string of armed business robberiesRead the Press Release
Serial robbers responsible for at least thirteen armed robberies in Central Indiana, receive 25 year sentence from U.S. District Judge Jane Magnus-Stinson
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the convictions of Armand R. Fuller, 22, and Darian T. Dowdell, 23, both of Indianapolis, for their role in a string of armed robberies in Indianapolis and neighboring counties. Following their pleas of guilty today, U.S. District Judge Jane Magnus–Stinson sentenced Fuller and Dowdell to 25 years each in federal prison.
“These two men are violent offenders who deserve to spend the next 25 years of their lives in federal prison,” said Minkler. “They made a living robbing local businesses and now are being held accountable.”
During today’s proceedings, Judge Stinson heard evidence that between November of 2013 and February of 2014, Fuller, Dowdell, and a third Indianapolis man, Fletcher A. Greer, 22, robbed some thirteen commercial establishments in the Indianapolis area at gunpoint. Those robberies included four Speedway gas stations, five McDonald's restaurants, a Jack in the Box, a Starbucks, and a Little Caesar’s pizza business. In at least one robbery, members of the trio pointed a gun at the head of a pregnant business employee and demanded cash and the employee’s personal cell phone. In another robbery, the trio pointed guns at customers of the business and demanded the customers turn over personal items, including cell phones and a laptop computer.
Based on surveillance footage from security cameras at the various businesses, the FBI and IMPD linked common elements among all the robberies, to include distinctive clothing worn by the perpetrators, and distinctive weapons the perpetrators carried, and determined that the robberies were all connected.
On February 18, 2014, Fuller, Dowdell, and Greer Greer, robbed a Steak ‘n Shake restaurant in Brownsburg, and then led responding units from the Brownsburg Police Department, IMPD, and the FBI Safe Streets Task Force on a high-speed chase over snow-covered roads in Hendricks County. The trio was apprehended after the vehicle they were driving failed to negotiate a turn and crashed into a drainage ditch. At the time of their arrest, Fuller, Dowdell, and Greer were found in possession of the distinctive clothing and firearms which linked them to the earlier robberies. All totaled, law enforcement officials recovered five firearms, two Tech 22, .22 caliber handguns, a .38 caliber revolver, a .357 caliber revolver, and a stolen .40 caliber semi-automatic handgun, that had been used in the robbery spree.
Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI stated, “violent crime remains a significant priority for the FBI and our Safe Streets Task Force is committed to investigating those most dangerous to our communities.”
According to Assistant United States Attorney Mathew J. Rinka, who prosecuted the case for the government, Judge Magnus-Stinson ordered Fuller and Dowdell to serve five years of supervised release following completion of their federal prison sentence, and ordered them to pay more than $18,000 in restitution to the various business and individuals they robbed.
Judge Magnus-Stinson sentenced Fletcher A. Greer in April of this year to 15 years in prison, followed by three years of supervised release, for his role in the robberies.
United States Attorney's Office recovers over twenty million dollars in case against Community Health NetworkRead the Press Release
Josh J. Minkler, United States Attorney, announced today a $20,324,902.22 civil settlement with Community Health Network (ACHN), a non-profit health system with more than 200 sites of care and affiliates throughout the State of Indiana. The settlement will resolve allegations that CHN submitted false claims to the Medicare and Medicaid programs.
"The civil False Claims Act was created to serve as a tool for combating fraud, waste and abuse in federally funded programs," Minkler stated. "This recovery sends the message that health care providers must comply with all applicable state and federal regulations when billing the United States Government for services, or they will face consequences." Under the False Claims Act, the Government may collect three times the loss it incurred, plus a fine of $5,500 to $11,000 for each false bill submitted.
This settlement is the result of an investigation conducted by the Department of Health and Human Services – Office of the Inspector General (“HHS-OIG”); the Federal Bureau of Investigation; and the State of Indiana Attorney General’s Office Medicaid Fraud Control Unit in coordination with the United States Attorney's Office and the United States Department of Justice in Washington, D.C.
Specifically, the United States alleges that since the late 1990s through October 2009, CHN had contracts with free-standing ambulatory surgery centers or “ASCs” not owned by CHN. Through these contracts, the ASCs would provide out-patient surgical services to CHN patients. CHN would then bill Medicare and Medicaid for the surgical services through the billing departments of its hospitals. When CHN presented the bill to the Medicare and Medicaid contractors, however, the billing information represented that the surgery was performed in the out-patient department of one of CHN’s hospitals, rather than in an ASC. Because the Medicare and Medicaid billing rates for surgeries performed in an ASC are generally lower than the billing rates for out-patient surgeries performed in a hospital, CHN received higher reimbursement from the Medicare and Medicaid programs than it was entitled. According to the United States, medical providers were specifically placed on notice by the Centers for Medicare and Medicaid Services (“CMS”) in late November 2007 that services provided in an ASC should only be billed at ASC rates, but CHN continued this practice until October 1, 2009.
According to Assistant United States Attorney Shelese Woods, who handled the case for the United States, CHN has also agreed to enter into a Corporate Integrity Agreement with HHS-OIG. “Our agency will continue to hold health care providers accountable for overbilling the Medicare and Medicaid programs,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General. “Our Corporate Integrity Agreement with CHN requires board of directors oversight as well as compliance mechanisms that are designed to help ensure that CHN submits appropriate claims to federal health care programs moving forward.”
The claims resolved by this settlement are allegations only and there has been no determination of liability. In investigating the case, HHS-OIG did not uncover any evidence of physical injury or harm to patients as a result of the alleged conduct.
Jeffersonville man sentenced for making and passing counterfeit U.S. CurrencyRead the Press Release
PRESS RELEASE
New Albany – United States Attorney Josh J. Minkler announced today that Jonathon Alan Frantz, 23, of Jeffersonville, Indiana, was sentenced to 30 months in prison by U.S. District Judge Sarah Evans Barker following his guilty plea to six counts of possessing and passing counterfeit United States Currency and one count of making counterfeit United States Currency. This case was the result of an investigation by the United States Secret Service, the Jeffersonville Police Department and the Clarksville Police Department.
Frantz plead guilty immediately before he was sentenced on June 29, 2015. At the time of his guilty plea, Frantz admitted that he used counterfeit currency to conduct numerous transactions with businesses in Southern Indiana and Northern Kentucky in order to acquire debit cards and genuine currency. Frantz further admitted that he produced the counterfeit United States Currency using on a color printer that was recovered by the Secret Service during the investigation. The total amount counterfeit currency recovered was more than $6,500.
“This case, yet again, demonstrates the Secret Service’s commitment to protect our nation’s monetary system,” said Craig Hutzell, Acting Special Agent in Charge of the Secret Service in Louisville. “The Secret Service was created 150 years ago for this mission, and in partnership with the Jeffersonville and Clarksville Police Departments, we continue to lock up those who take advantage of our merchants and neighbors in these schemes. The determination and skill of agents and detectives, coupled with the partnerships we have created with law enforcement colleagues in Indiana and Kentucky, should send a strong message to would be counterfeiters that these crimes will not go unpunished.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Barker imposed 3 years of supervised release following Frantz’s release from prison. Frantz must participate in a drug abuse prevention program and submit to drug testing while on supervision. Frantz was ordered to pay restitution in the amount of $7,000.00
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United States Attorney's Office recovers $1.5 million in case against home healthcare companyRead the Press Release
Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today a civil settlement with United Home Healthcare, Inc. and B&L Personal Services, Inc. (known collectively as “United”). Both companies are located in Indianapolis and are owned and operated by Byron and Laura Harris. The settlement will result in a total payment of $1.5 million to the United States and the State of Indiana.
United provided home healthcare services such as personal and attendant care services throughout Central Indiana. In 2012, the Department of Health and Human Services – Office of the Inspector General and the State of Indiana Attorney General’s Office Medicaid Fraud Control Unit began investigating a complaint that United was billing for services that it did not actually provide. Agents and investigators with HHS and the Indiana Attorney General’s Office interviewed patients and former employees, and reviewed multiple patient files.
According to Assistant United States Attorney Shelese Woods, who handled the case for the United States, the review of patient files showed that from 2012 through 2014 United had engaged in a pattern of overbilling services. Specifically, the patient files and corresponding billing data showed that many services billed for personal care and attendant care services were not documented; that there were dates for which United was reimbursed where the patient file showed that the patient did not receive the service; or that United over-billed the number of service hours actually provided to the patient.
"The civil False Claims Act was created to serve as a tool for combating fraud, waste and abuse in federally funded programs," Minkler stated. "A financial injury to the United States is a financial injury to all of us. This recovery sends the message that health care providers must comply with various applicable state and federal regulations when billing the United States Government for services, or they will face consequences."
Under the False Claims Act, the Government may collect three times the loss it incurred, plus a fine of $5,500 to $11,000 for each false bill submitted. According to AUSA Woods, the estimated loss to the Medicaid Program was $589,042.60 for thousands of individual claims. United is paying $1,454,490.27 to the United States, which is more than two times the estimated loss. United has also agreed to pay $45,509.73 to the State of Indiana for its investigative fees and costs.
“It’s a brazen violation of public trust when a healthcare provider hired to assist patients then fraudulently bills the Medicaid program, as taxpayers ultimately are victims in such a scheme. With the legal tool of the False Claims Act that encourages whistleblowers to come forward, the State of Indiana and our federal counterparts are able to claw back the tax dollars that were wrongfully paid out and hold defendants accountable,” said Indiana Attorney General Greg Zoeller, whose Medicaid Fraud Control Unit (MFCU) can receive information about suspected fraud at this link: http://bit.ly/1JDtOK2.
In agreeing to these terms, United denied all liability under the False Claims Act. In investigating the case, HHS did not uncover any evidence of physical injury or harm to patients as a result of the conduct.
Statement from the United States AttorneyRead the Press Release
INDIANAPOLIS - Tim Durham was resentenced today by U.S. District Judge Jane Magnus-Stinson to 50 years in federal prison; the same sentence he originally received after his jury trial on securities and wire fraud charges. Mr. Durham’s sentence means he will effectively spend the rest of his life in prison for stealing over $220 million dollars from nearly 5000 victims, many of whom lost their life’s savings.
Mr. Durham’s actions were a result of greed, arrogance and deceit and his sentence is a just consequence for his crimes.
Minkler sworn in as United States AttorneyRead the Press Release
INDIANAPOLIS - Today, United States District Court Chief Judge Richard L. Young, swore Josh Minkler in as the United States Attorney for the Southern District of Indiana. Under federal law, the United States District Court for the Southern District of Indiana appointed Minkler to fill the position effective immediately.
Minkler previously served as Acting United States Attorney, First Assistant U.S. Attorney and Drug and Violent Crime Unit Chief. Minkler has been an Assistant U.S. Attorney since 1994.
“I would like to thank the judges of the United States District Court for their faith in asking me to lead the United States Attorney’s Office,” said Minkler. “I am grateful for the opportunity to work for the public as our office goes forward to justly enforce the laws that unite us as a great nation.”
A native of Muncie, Indiana, Mr. Minkler graduated Muncie Northside High School in 1981, Wabash College in 1985 and Indiana University School of Law, Bloomington 1988.
“The Indiana Federal Community Defender congratulates Josh Minkler on being named United States Attorney for the Southern District of Indiana,” said Chief Federal Defender Monica Foster. “The Court could not have selected a smarter, more experienced, and fair person to lead the Office of the United States Attorney. Though we are foes in the courtroom, we have the utmost respect for his abilities and his character. He brings to the office a level of experience that will serve the citizens of the Southern District well in the struggle for justice.”
FBI Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Division congratulates Mr. Minkler on his appointment and looks forward to continuing their professional partnership. “The Southern District of Indiana is fortunate to have a United States Attorney of such a high caliber serving its citizens. It has been a distinct pleasure working alongside Josh and collaborating on the priorities of the Department of Justice.”
“Josh Minkler is an experienced and seasoned prosecutor who will make a fine United States Attorney,” said Special Agent in Charge of the DEA in Chicago, Dennis Wichern. “On behalf of all the employees of the DEA, we wish he and his staff all the best. The Office is in good hands under his guidance.”